Senario 3 ABC Inc. leased a drilling equipment form a regional oil services...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Senario 3
ABC Inc. leased a drilling equipment form a regional oil services company. The oil company purchased the drilling equipment from an international drilling equipment manufacturer at a cost of700,000 SR. The following information is given:
Which Condition met?
Given these information Lease term : 3 years Payment frequency: semiannual (at the end of the periods) Economic life of the asset Three years Payment amount: 120,000 SR Rate (lessors and the lowest rate) 12%
Ownership transfers
A bargain purchase option
The noncancelable lease term is equal to 75% or more of the expected economic life of the asset,
The PV of the minimum lease payments is 90% or more of the fair value of the asset
Operating Lease
Senario 3
ABC Inc. leased a drilling equipment form a regional oil services company. The oil company purchased the drilling equipment from an international drilling equipment manufacturer at a cost of700,000 SR. The following information is given:
Which Condition met?
Given these information
| Lease term : | 3 years |
| Payment frequency: | semiannual (at the end of the periods) |
| Economic life of the asset | Three years |
| Payment amount: | 120,000 SR |
| Rate (lessors and the lowest rate) | 12% |
Ownership transfers | ||
A bargain purchase option | ||
The noncancelable lease term is equal to 75% or more of the expected economic life of the asset, | ||
The PV of the minimum lease payments is 90% or more of the fair value of the asset | ||
Operating Lease |
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.