Miller Company leases office equipment from Swanson Company.The fair value of the equipment exceeds Swanson's cost.Collectability of the lease payments is reasonably assured; there are no material uncertainties surrounding the lease.Additionally,there is a bargain purchase option.Swanson will account for the lease as a(n) ________.
A) guaranteed lease
B) direct financing lease
C) operating lease
D) sales-type lease
Correct Answer:
Verified
Q82: In a sales-type capital lease, the present
Q83: When there is a bargain purchase option,
Q88: Companies account for guaranteed residual values in
Q95: If the lease contract allows the lessee
Q106: Which of the following is true if
Q115: How is an unguaranteed residual value accounted
Q117: Which of the following statements regarding a
Q362: A lessee's option to purchase a leased
Q368: What is the difference between a sales-type
Q369: A noncancellable lease contains a bargain purchase
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents