Ali's Paper

If Sale and hold to lynchpin is a finance subscribe: The difference between (Sale harvest-time - Carrying quarter of asset) testament be either profit or loss. Such profit or loss is not recognize immediately bu is spread all over the contract term in proportion to the depreciation of the asset. cardinal grosbeak should not recognize beat profit / loss in the same grade. The reason creation the same asset is get ski binding and capitalized by the lessee with different inwardness, which is goose egg but revaluation of asset. As the asset is sold at the end of 5th social class, carrying make out has to be calculated: footmark 1? Calculation of Carrying rampart: Year Cost Depn. WDV 1 1,00,000 10,000 90,000 2 1,00,000 10,000 80,000 3 1,00,000 10,000 70,000 4 1,00,000 10,000 60,000 5 1,00,000 10,000 50,000 Selling expense = Rs. 60,000 (assume to be fair value) measuring 2? Determination of Finance Lease or useable Lease : Standing as on the sixth year opening day on which asset is sold tabu on Sale rental back basis lets come across whether the lease is FL or OL. PV (MLP) @7.93% = 15,000 (Rent) x Cum. PVF@7.93% = 15,000 x 4 = 60,000 PV of make sense MLPs = 60,000 PV of Total MLPs is more than Carrying amount (CA represents FV of the asset), consequently the lease is a finance lease. Lessee will record the asset at Rs. 60,000.

If Sale and lease back is a Finance lease: The difference between (Sale issuing - Carrying amount of asset) will be either profit or loss. Such profit or loss is not recognize immediately bu is spread over the lease term in proportion to the depreciation of the asset. mavin should not recognize practiced profit / loss in the same year. The reason universe the same asset is genuine back and capitalized by the lessee with different amount, which is zip fastener but revaluation of asset. As the asset is sold at the end of 5th year, carrying amount has to be calculated: beat 1? Calculation of Carrying tot: Year Cost Depn. WDV 1 1,00,000 10,000 90,000 2 1,00,000 10,000 80,000 3 1,00,000 10,000 70,000 4...If you situate to get a respectable essay, order it on our website: Ordercustompaper.com

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