Lease - School Assignment

by Waqar
(Lahore, Pakistan)

Which type of lease these are, please explain.

(a) Firdous limited is intended to acquire an asset for one season that is consisted of 6 months. Hefty amount is needed to acquire the asset so, company decided to acquire it on lease. After six month period, leasing agreement will be expired without any possession

(B) PK Plus limited acquire asset on lease from Damas leasing company. PK plus has an option to purchase the asset at end of lease term, on below its fair price

(C) Admiral limited got an asset on lease. According to the expert the economic useful life of asset is not more than 12 years. Whereas, term of lease is for 10 years. Furthermore, company has no intention to purchase the asset at the end of lease term.

(D) Pine Corporation acquired an asset on lease without intention to purchase it at expiry of series of rental payments. Fair value of asset is Rs.100,000 and rental payment is Rs.80,000.

Jade company Ltd. acquired an assets form its associated company BBG. Jade company will use the asset for 6 year and will pay monthly installments to BBG

Requirement: Is this agreement is lease agreement? Discuss.

section divider

Hi Wagar,

It looks like you taking a bookkeeping or accounting class and looking for help with your assignment. Sorry, no can do. You'll have to work your way through the assignment. If I respond to the question, you will be cheating yourself of a learning opportunity. Good luck on your assignment.

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Learning QuickBooks.

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.

Like this page? Please let Google
know by clicking the +1 button.

 Keep Your  eDocuments Safe And Secure… $7 USD

Your Learning Curve!

Buy Now

Warm up your tea cup and check out these chats ...

Click on image above to read the chat.

Purchasing These Products Through My Links Helps To Support This Site

Click on image above for my review.

Join Me On Facebook

Help support this site by "liking" me! Here's where I post current information.

Listed Under Websites NOT Local Business.
This website is not associated with the business operating in Bonnyville AB.

A Handy Reference

Buy Now