中级会计学 intermediate accounting chapter 20赖红宁 课后答案

1、chapter 20accounting for leasescontent analysis of exercises and problemsnumbercontenttime range(minutes)e20-1operating lease. annual rental payments, no renewable option clause, executory costs. lessees journal entries to record agreement, payments, expenses. 5-10e20-2capital lease. calculation of

2、rental payments made at end of year. table summarizing lease payments, interest expense. journal entries.10-15e20-3capital lease. payments made at beginning of year. table summarizing lease payments, interest expense. journal entries.10-15e20-4direct financing lease. calculation of rental receipts,

3、made at end of year. table summarizing rental receipts, interest revenue. journal entries.10-15e20-5direct financing lease. journal entries to record contract, first rental receipt. 5-10e20-6direct financing lease / capital lease. table summarizing lease and interest payments. journal entries for le

4、ssor and lessee.10-15e20-7sales-type lease. payments made at end of year. calculation of selling price (fair value). table summarizing lease receipts, interest revenue. journal entries.10-15e20-8sales-type lease. payments made at beginning of year. calculation of selling price (fair value). table su

5、mmarizing lease receipts, interest revenue. journal entries.10-15e20-9sales-type lease / capital lease. computation of lease payments. journal entries for lessor and lessee.10-15e20-10operating lease / sales-type lease. accounted for as operating, should have been sales-type. computation of effect o

6、n net income.10-20e20-11operating lease. computation of income derived from lease by lessor, amount of rent expense for lessee.10-1520-1numbercontenttime range(minutes)e20-12determining type of lease. title passes at lease-end, collectibility reasonably assured, no uncertainties surrounding costs to

7、 be incurred. table summarizing receipts, revenue. lessors journal entries.15-20e20-13(appendix). sales-leaseback. calculation of lease payments. lessors journal entries to record sale and agreement. description of how to treat the gain by the lessee.15-20p20-1determining type of lease. no bargain p

8、urchase option, no agreement to transfer ownership at lease-end, no uncertainties surrounding costs to be incurred. journal entries for lessee and lessor.15-25p20-2determining type of lease. lessors viewpoint. option to buy, collectibility reasonably assured, no uncertainties surrounding costs. jour

9、nal entries, disclosure requirements.25-35p20-3capital lease. calculation of rental payments. table summarizing lease payments, interest expense. journal entries, partial balance sheet.30-45p20-4direct financing lease. table summarizing lease receipts, interest revenue. explanation of lease classifi

10、cation. journal entries. partial balance sheets.35-50p20-5comprehensive: direct financing and capital lease. computation of rental amounts. table summarizing lease and interest receipts. analysis of lessees lease classification. journal entries for lessor and lessee. comparative financial statement

11、presentation.45-60p20-6direct financing lease. unguaranteed residual value. computation of rental amounts. table summarizing lease and interest receipts. journal entries.30-40p20-7sales-type lease. calculation of implied selling price. table summarizing lease receipts, interest revenue. explanation

12、of lease classification. journal entries, partial balance sheet.30-45p20-8various lease issues. journal entries for lessee and lessor to record all lease transactions.30-45p20-9various lease issues. computation of annual rentals if payable at beginning of year, at end of year. table. journal entries

13、 for lessee and lessor. partial balance sheet disclosures.45-60p20-10initial direct costs. analysis for various lease classifications. determination of lessors lease classification. discussion of lessors journal entries.20-30numbercontenttime range(minutes)p20-11various lease issues. classification

14、of lease for lessee, for lessor. option to buy, collectibility reasonably assured, no uncertainties. lessor journal entries. accounting for a change in residual value.30-45p20-12accounting for leases. journal entries to record the lease for both the lessee and lessor.30-45p20-13(aicpa adapted). less

15、ors income statement. preparation of lessors income statement, including sales-type and operating lease as well as long-term construction contracts.50-60p20-14(appendix). determining types of leases. for lessee, for lessor. lease of land. no bargain purchase option, collectibility reasonably assured

16、, no uncertainties surrounding costs.10-20p20-15(appendix). sales-leaseback. classification of lease by lessee. journal entries for both lessee and lessor.20-30answers to questionsq20-1fasb statement no. 13 as amended provides a common set of criteria for determining the classification of leases by

17、both the lessee and the lessor.q20-2the advantages of leasing for the lessee include:1.financing benefits:a.the lease provides 100% financing so that the lessee acquires the asset without having to make a down payment.b.the lease contract may contain fewer restrictive provisions for financing.c.the

18、leasing arrangement creates a claim that is against only the leased equipment and not against all assets.2.risk benefit: the lease may reduce the risk of obsolescence and inadequacy for the lessee.3.tax benefit: for income tax purposes, the lessee, through deduction of the lease payment, can write o

19、ff the full cost of an asset.4.financial reporting benefit: for operating leases, the lease does not add an asset or a liability to the lessees balance sheet.5.billing benefit: for certain contract-type work, leasing may permit higher charges because interest on borrowed money to purchase assets is

20、not usually allowed as a contract charge, whereas the interest element contained in the rental payments is allowed as a contract charge.20-25q20-3by structuring the terms of the lease so that it qualifies as an operating lease, the lessee avoids having to include the asset and the liability in the b

21、alance sheet. exclusion of these items creates more favorable financial ratios, such as rate of return on investment, the current ratio, and the ratio of debt to equity. this, in turn, may increase the borrowing capacity of the lessee. the lessee is practicing off balance sheet financing. a capital

22、lease, on the other hand, would appear in the financial statements and affect financial ratios. it may impede lessee borrowing efforts.q20-4a.a lease is an agreement conveying the right to use property, plant, or equipment (land and/or depreciable assets), usually for a stated period of time.b.a sal

23、es-type lease for the lessor is a lease that meets any one of the column a criteria and both of the column b criteria in exhibit 20-2, and results in a manufacturers or dealers profit.c.a direct financing lease for the lessor is a lease that meets any one of the column a criteria and both of the col

24、umn b criteria, and does not result in a manufacturers or dealers profit.d.a sale-leaseback transaction is a lease transaction in which the owner of an asset sells it, and then immediately leases it back from the buyer.e.an operating lease for the lessee is a lease that meets none of the column a cr

25、iteria. for the lessor, it is a lease that meets none of the column a criteria, and fails at least one of the column b criteria.f.a leveraged lease is a three-party lease in which one party (the equity participant) buys or manufactures an asset and leases it to another party (the asset user), with a

26、 third party (the debt participant) providing nonrecourse financing for the transaction.q20-5a.inception of lease is the date of the lease agreement or written commitment; or, if the leased property is being constructed or acquired in the future, the date that the title passes to the lessor.b.bargai

27、n purchase option is a provision allowing the lessee to purchase the leased property at the end of the life of the lease at a price so favorable that the exercise of the option appears, at the inception of the lease, to be reasonably assured.c.unguaranteed residual value is that portion of the estim

28、ated residual value of the leased property that is not guaranteed by the lessee or by a third party unrelated to the lessor.d.implicit interest rate is the interest (discount) rate that, when applied on a present value basis to the sum of the minimum lease payments and any unguaranteed residual valu

29、e accruing to the lessor, causes the resulting present value to be equal to the net investment of the leased property to the lessor.q20-5 (continued)e.initial direct costs are costs incurred by the lessor to originate a lease that (1) result directly from and are essential to acquire that lease and

30、(2) would not have been incurred had that leasing transaction not occurred. they also include certain costs directly related to specified activities performed by the lessor for that lease, such as evaluating the lessees financial condition, negotiating lease terms, preparing and processing lease doc

31、uments, and closing the transaction.q20-6if there is a bargain purchase option, the components of the minimum lease payments are: (1) the minimum periodic rental payment required by the lease over the lease term, and (2) the payment required by the bargain purchase option. otherwise, they include (1

32、) the minimum periodic rental payments plus (2) any guarantee by the lessee of the residual value, and (3) any payments upon failure to renew or extend the lease.q20-7the criteria for a capital lease are:1.transfer of ownership at end of lease2.bargain purchase option3.lease term is 75% or more of t

33、he estimated economic life of the asset4.present value of minimum lease payments is 90% or more of fair value of the leased property to the lessorone (or more) of these criteria must be met for the lessee to classify a lease as a capital lease.q20-8under an operating lease, the lessee records each r

34、ental payment as rent expense; no amount is capitalized. the lessor records each rental receipt as rent revenue. the leased asset is retained on the lessors books and is depreciated by the lessor.q20-9under a capital lease, the lessee records the present value of the minimum lease payments as both a

35、n asset and a liability. the lessee recognizes a portion of each payment as interest expense to produce a constant rate of interest on the book value at the beginning of the period, and recognizes the remainder of the payment as a reduction of the lease obligation. the lessee amortizes the asset ove

36、r the term of the lease, unless there is a bargain purchase option or transfer of ownership at the end of the lease, in which case the amortization period is the economic life of the asset.q20-10the two additional criteria for a sales-type lease are:1.collectibility of the minimum lease payments is

37、reasonably assured.2.no important uncertainties surround the amount of unreimbursable costs yet to be incurred by the lessor under the lease.in addition, the lease must result in a manufacturers or dealers profit or loss.q20-11the basic difference in accounting for a sales-type lease is that the car

38、rying value of the asset is charged to cost of goods sold, and the present value of the minimum lease payments is recorded as the amount of the sale. in a direct financing lease, no sales or cost of goods is recognized. instead, the asset is removed from the books and the difference between its carr

39、ying value and the undiscounted minimum lease payments is recorded as unearned interest revenue. the net investment in a sales type lease is accounted for in a similar manner to that for a direct financing lease.q20-12the fasb states that the interest revenue from a lease is recognized so as to yiel

40、d a constant return on net investment. compound interest techniques can be used to compute this return if the following are known: (a) the amount of the lease payment, (b)the cost or fair value of the lease, and (c)the number of periods of the lease.multiplying the interest rate by the amount of the

41、 net investment at the beginning of the year results in a constant return on investment.q20-13owens company records the lease as a capital lease due to the bargain purchase option, and depreciates the asset over its estimated economic life.q20-14the original lease was a capital lease and mcfarland c

42、ompany is relieved of its obligation. mcfarland removes the equipment from its books, and recognizes the gain when the new lease transaction takes place, that is, during the current year.q20-15a.lessees disclosure:1.for all leases, a general description of the leasing arrangement2.for operating leas

43、es having initial or remaining noncancellable lease terms in excess of one year:(a)future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the 5 succeeding fiscal years(b)the total of minimum rentals to be received in the future

44、under noncancellable subleases as of the date of the latest balance sheet presented3.for all operating leases, rental expense for each period, with separate amounts for minimum rentals, contingent rentals, and sublease rentals4.for capital leases:(a)the gross amount of assets recorded under capital

45、leases as of the date of each balance sheet, presented by major classes according to nature or function(b)future minimum lease payments as of the date of the latest balance sheet presentedq20-15 (continued)a.4. (continued)(c)the total of minimum sublease rentals to be received in the future under no

46、ncancellable subleases as of the date of the latest balance sheet presented(d)total contingent rentals incurred for each period(e)assets, accumulated amortization, amortization expense, and liabilitiesb.lessors disclosure:1.a general description of all leasing arrangements2.for operating leases:(a)a

47、s of the date of the latest balance sheet presented, the cost and carrying amount, if different, of property on lease or held for leasing by major classes of property according to nature or function, and the amount of the total accumulated depreciation(b)minimum future rentals on noncancellable leas

48、es as of the date of the latest balance sheet presented, in the aggregate and for each of the 5 succeeding fiscal years(c)total contingent rentals included in income for each period3.for direct financing and sales-type leases:(a)the components of the net investment in direct financing and sales-type

49、 leases as of the date of each balance sheet presented(1)the future minimum lease payments to be received, with separate deductions for (a) amounts representing executory costs, including any profit thereon, included in the minimum lease payments and (b) the accumulated allowance for uncollectible m

50、inimum lease payments receivable(2)the unguaranteed residual values accruing to the benefit of the lessor(3)for direct financing leases only, initial direct costs(4)unearned income(b)future minimum lease payments to be received for each of the 5 succeeding fiscal years as of the date of the latest b

51、alance sheet presented(c)total contingent rentals included in income for each periodq20-16the primary accounting issue in accounting for a sales-leaseback transaction from the seller-lessees viewpoint is the recognition of a profit or a loss on the sale. any profit or loss is deferred and amortized

52、in proportion to the amortization of the leased asset, if a capital lease, or in proportion to the rental payments, if an operating lease. if the fair value of the property is less than its undepreciated cost at the time of the transaction, a loss is recognized immediately on the difference between

53、the undepreciated cost and the fair value.q20-17the fact that there are three or four parties (equity participant, asset user, debt participant, and also a manufacturer if the equity participant does not make the product) distinguishes a leveraged lease from other leases. for the lessee there are no

54、 new accounting issues. the lessee classifies and accounts for the lease as for a nonleveraged lease.answers to casesc20-11.initial direct costs are costs incurred by the lessor to originate a lease that (1) result directly from and are essential to acquire that lease and (2) would not have been inc

55、urred had that leasing transaction not occurred. they also include certain costs directly related to specified activities performed by the lessor for that lease, such as evaluating the lessees financial condition, negotiating lease terms, preparing and processing lease documents, and closing the tra

56、nsaction.2.accounting treatment of initial direct costsa.for an operating lease, the initial direct costs are recorded as a prepaid asset (if material in amount), and amortized as an operating expense over the term of the lease, to be matched against rental revenue.b.for a sales-type lease, the initial direct costs are added to the cost of the leased asset (less the present value of the unguaranteed residual value accruing to the benefit of the lessor) and are expensed in the period of the lease transaction.c.for a direct financing lease, the initial direct costs are d