Presented Below Are Three Different Aircraft Lease Transactions That Occurred

question 15

Essay

Presented below are three different aircraft lease transactions that occurred for Western Airways in 2017. All the leases start on January 1, 2017. 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 2017?
(c) How should the lease transaction with Laine Leasing be recorded in 2017?

Identify the reporting requirements for earnings per share under different accounting standards.

Grasp the concept and financial effect of a retained earnings restriction.

Distinguish between various types of dividends and their treatment in financial statements.

Understand the meaning and importance of the debt to total assets ratio.

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Definitions:

Vision

The ability to see, which involves the processing of visual information by the eyes and brain.

Snellen Letter Chart

A chart commonly used by eye care professionals to measure visual acuity, featuring rows of letters that decrease in size.

Funduscopic Examination

A medical procedure that involves looking at the interior surface of the eye, including the retina and optic nerve, using an instrument called an ophthalmoscope.

Red Reflex

A reddish reflection of light from the eye's retina observed during an ophthalmologic examination.