ML Leased a Computer to LH on January 1, 2014

question 180

Essay

ML leased a computer to LH on January 1, 2014.The lease was a five year fixed, non-cancellable agreement.The payments were finalized at $2,380 per year with the first payment on January 1, 2014 and ML paid $9,500 for the computer.Carrying value is equal to fair value.The lease is deemed a finance lease.Based on the above information, what type of lease is this for the lessor.Prepare the journal entries for at the inception of the lease using the gross method.

Understand the role of oral contracts and their limitations.

Comprehend the significance of merger (integration) clauses in written contracts.

Analyze the impact of historical legal rules on contemporary contract law.

Understand the role of equitable doctrines like promissory estoppel in enforcing promises.

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Definitions:

Adaptive Culture

An organizational culture characterized by flexibility, customer focus, and an ability to change in response to external conditions.

Customer Service

The assistance and support provided by a company to those people who buy or use its products or services.

Deculturation

The process of losing or diminishing certain aspects of one's original culture, often as a result of contact with another culture.

Assimilation

The process by which individuals or groups adopt the culture, attitudes, and norms of another group, often losing aspects of their original identity.