1. Should Trans-Share account for the sale of the fractional interest in the airplane according to ARC 840 (Accounting for Leases) or ARC 606 (Revenue Recognition for Customer Contracts)? Provide citation and explain in your own words. Based off the Codification, Trans-Share should account for the sale according to ARC 606. Citing 840-10-1, a criteria for lease classification is derive from the transfer of all substantial benefits and risks incidental to the ownership of that property. What this
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MINI CASE #1 Issue Identified How to account for the expected loss resulted from redemption of the debt obligations in the period that it announces its intent to call the debt for redemption? ASC References ASC 470-50-40-2 states that “ a difference between the reacquisition price of debt and the net carrying amount of the extinguished debt shall be recognized currently in income of the period of extinguishment as losses or gains and identified as a separate item.Gains and losses shall not
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Photo Barn is one of three current tenants that have been at Burwood One since October 1997. Our business has expanded and contracted several times over the past 18 years and could be currently categorised as in a stable …. When landlord commenced the centre’s long awaited redevelopment, we, along with the other tenants at the time, had to absorb a significant downturn in our business. When the top carpark was blocked off, we saw an immediate drop off in sales, followed by 18-24 months of depressed
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Farhan Ilyas Islamic banking is banking or banking activity that is consistent with the principles of sharia and its practical application through the development of Islamic economics. The Basic Difference between Capitalist and Islamic Economy Islam does not deny the market forces and market economy. Even the profit motive is acceptable to a reasonable extent. Private ownership is not totally negated. Yet, the basic difference between capitalist and Islamic economy is that in secular capitalism
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Evaluate the following features or comments and decide if the description would pertain to a capital lease or an operating lease. Operating Lease Capital Lease The lessee reports the leased asset on its balance sheet x Payments are reported fully as rent expense x Ownership of the property passes to the lessee by the end of the lease term x The lease term is at least 75% of the remaining life of the property x Interest expense is measured
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New Mexico 30 Day Notice to Terminate Rental Agreement New Mexico 30 Day Notice to Terminate Rental Agreement is an instrument used by a landlord to initiate legal eviction of a tenant with no-cause or good-cause grounds. However, it is necessary to serve this notice 30-days prior to the date of eviction. The landlord must retain two or more copies of this form for use in the court during a legal petition filed for eviction. This legal document is in line with the sections 47-8-33, 47-8-37 of NMSA
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Business Law: Lecture 10 Bailment: Temporary transfer that allows you to transfer the possession for usage. Example: Lease a Car Types of Bailment: 1. Bailment for Value: when there is a payment for the usage of property. Example: Leasing a rental car for a vacation/crossing the boarders. 2. Gratuitous Payment: when dealing with a payment that requires no transfer of funds. When there is a risk of money there is a higher standard because you’re making an economic performance
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Interest Program be accounted for as a lease? Provide support and citation from codification. The Fractional Interest Program offered by Trans-Share Inc. may be accounted for as an operating (service) lease. The purchase of an undivided one-eighth interest in the aircraft is basically the same as leasing the plane. In the Trans-Share case, customers enter into purchase agreements with the company to lease aircraft for a five year period. Characteristics of a lease can be found in code ASC 840-20-25-1
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Capital Lease: which is a lease treated as an acquisition of the assets financed by a loan OR Operating Lease: which is a lease treated as a rental agreement so there for would not be an asset. BUT a capital lease has to meet one of three criteria and in this case it does. The criteria it meets States: The present value of the minimum lease payments is equal to or greater than 90% of the fair market value of leased property. And if you were to calculate the lease payments out
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a building to Brill under an operating lease for ten years at $50,000 per year, payable the first day of each lease year. Wren paid $15,000 to a real estate broker as a finder’s fee. The building is depreciated $12,000 per year. For year 1, Wren incurred insurance and property tax expense totaling $9,000. Wren’s net rental income for year 1 should be a. $27,500 b. $29,000 c. $35,000 d. $36,500 3. (a) Net rental income on an operating lease is equal to rental revenue less related
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