A dealer of large earth movers that leases the mac
A dealer of large earth movers that leases the machinery to its customers is most likely to treat the leases as:
A.operating leases, and account for inventory using LIFO.
B.sales-type leases, and account for inventory using specific identification.
C.direct financing leases, and account for inventory using weighted average cost.
参考解答
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2024-10-27 10:15:09
Ans:B.
Lessors that are dealers or manufacturers of the leased assets typically recognize sales revenue at the inception of a lease and thus account for their leases as sales-type capital (finance) leases.Dealers of high-value items that can be distinguished one from another, such as large earth movers, typically use specific identification to account for inventory.
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