Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. security devices inc. needs additional office spac

Security devices Inc. needs additional office space to accommodate expansion. SDI wants to avoid income statement...

60.1K

Verified Solution

Question

Accounting

Security devices Inc. needs additional office space to accommodateexpansion. SDI wants to avoid income statement effects that woulddisrupt its attempt to “smooth” income over time. Which leaseclassification would management prefer? Explain.

Answer & Explanation Solved by verified expert
4.5 Ratings (828 Votes)
Ans Here since Security devices Incs management does not want to take hit over its income statement hence they should go for Capital lease instead of operating lease since operating lease are used basically for short term period    See Answer
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

Transcribed Image Text

Security devices Inc. needs additional office space to accommodateexpansion. SDI wants to avoid income statement effects that woulddisrupt its attempt to “smooth” income over time. Which leaseclassification would management prefer? Explain.

Other questions asked by students

Electrical Engineering
1.2K views

Assignment Description: Develop and test an Intel 8086 assembly program that reads two decimal numbers x and...

Advance Math
1.2K views

Explain Fishers Exact Test ? Difference between BLUE and BLUP ? Different properties of BLUP

Geometry
1.2K views

Find the standard form of the equation of the circle with the given characteristics Center...

Basic Math
1.2K views

Compare the 3 data sets:Data A: 34, 52, 72, 85, 62Data B: 10, 11, 9,...

Accounting
1.2K views

Which of the following is considered a period cost? Select one:...

Accounting
1.2K views

Peterson Furniture Designs is preparing its annual financial statements...

Accounting
1.2K views

Marston Corporation makes a special-purpose machine, D4H, used in the textile industry. Marston...

Accounting
1.2K views

Horton Micro Chip Company issued $100,000 of face amount of 6-year bonds on January 1,...

Accounting
1.2K views

\table[[Cash (Summary Form)],[Balance, Jan. 1,8,000,,],[Receipts from customers,364,000,Payments for goods,200,000],[Dividends on stock investments,6,000,Payments for operating expenses,140,000],[Proceeds...

Finance
1.2K views

Choose the best answer below to complete the sentence: ETFs trade on an'exchange like stocks...

Accounting
1.2K views

tudions: Following the requirements below, please complete a report showing your findings. The sport must...

Accounting
1.2K views

Please do not hand write the answers unless your handwriting is really easy to read...