Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. jillian company purchased a van with a fair market

Jillian Company purchased a van with a fair market value of $55,000 for $40,000 and...

90.2K

Verified Solution

Question

Accounting

Jillian Company purchased a van with a fair market value of $55,000 for $40,000 and then leased this van for 5 years to the Bryant Corporation. Jillian Company typically resells these vans but has decided lease them as a favor for Bryant Corp. Which of the following statements is true?

Question 11 options:

A. If the van has an expected life of 8 years, then both parties must report the transaction as a capital lease per US GAAP.

B. Since this van is normally sold, Bryant must report it as a sales-type lease.

C. If the van has an expected life of six years, then both parties must report the transaction as a capital lease per US GAAP.

D. Since this vehicle is normally sold, the lease contract should be recorded as a capital lease by Jillian.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

. You are mountain climbing with a friend. You need to reach a ledge that is 22...

Operations Management
1.2K views

This chapter looks at personal selling, the oldest form of marketing and one of the oldest...

Chemistry
1.2K views

(a) How many moles of ammonium ions are in 0.795 g of ammonium carbonate? (b) What is...

Electrical Engineering
1.2K views

Give examples of 3 distinct types of filters (band pass, high pass, and low pass). Create...

General Management
1.2K views

Discuss the pros and cons of framing and anchoring. Discuss whether or not individuals, groups, or...

Biology
1.2K views

In order to come to reliable conclusions about pillbug preferences, you needed to use theMultiple...

Physics
1.2K views

Light with average flux of 50 W cm2 falls normally on non reflecting surface at...

Physics
1.2K views

Question No 25 The ammeter reading in the following circuit will be 6 0 wwww...

Accounting
1.2K views

Shire Company's predetermined overhead rate is based on...

Accounting
1.2K views

DeZurk Corporation had the following stockholders' equity section in its June 30,2023 , balance sheet...

Finance
1.2K views

Question 25 Regarding company pension plans, "normal retirement age" means what? O An employee cannot...

Finance
1.2K views

You are a risk manager for Flagstar Savings and Loan (FSL). FSL's balance sheet is...