Homework Help: Accounting

Posted by Vanessa on Saturday, September 24, 2011 at 9:05pm.

Case 13-5 Lease Classifications

Doherty Company leased equipment from Lambert Company. The classification of the lease makes a difference in the amounts reflected on the balance sheet and income statement of both Doherty and Lambert.

Required:

What criteria must be met by the lease in order that Doherty Company classify it as a capital lease?
What criteria must be met by the lease meet in order that Lambert Company classify it as a sales-type or direct financing lease?
Contrast a sales-type lease with a direct financing lease.

Accounting - SraJMcGin, Saturday, September 24, 2011 at 9:10pm
Try some of the following links for information:

1. capital = http://www.google.com/search?q=capital+lease&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a

2. sales-type = http://www.google.com/search?q=sales-type+lease&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a

3. direct-financing = http://www.google.com/search?q=direct-financing+lease&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a

Sra

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