Presented Below Are Three Different Aircraft Lease Transactions That Occurred

question 175

Essay

Presented below are three different aircraft lease transactions that occurred for Western Airways in 2014. All the leases start on January 1, 2014. In no case does Western receive title to the aircraft during or at the end of the lease period; nor is there a bargain purchase option. Instructions
(a) Which of the above leases are operating leases and which are finance leases? Explain your answer.
(b) How should the lease transaction with Utah Insurance be recorded in 2014?
(c) How should the lease transaction with Laine Leasing be recorded in 2014?

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Definitions:

Subjectivity of Perception

The idea that individual experiences and biases affect how one perceives the world, making perception a highly personal experience.

Population

In statistics and demography, a group of individuals, objects, or events that share common characteristics and are studied to understand trends and patterns.

Donald Hebb

A Canadian psychologist who proposed the theory that neurons that fire together wire together, contributing to learning and memory.

Neuronal Level

Refers to the processes, functions, or analyses at the level of individual neurons, the basic units of the nervous system.