Response to Client Request I

Response to Client Request I Ekaterina Urban ACC / 541 November 26, 2012 Sonja Wilson memoranda To: Supervisor From: Ekaterina Urban Date: November 26, 2012 Re: hauling stool shoot options. These argon the results of the assignment given to me by you finally week regarding the Trucking company potential unsanded client. I have done the required research on the financial Accounting Standards Board (FASB) website regarding involve structures and current practices as it would continue to the specific issue . All my research has shown that leasing would be an optimal option for the company to consider when leasing the extra trucks tally to the indispensability of the new potential client. Some of the benefits of leasing are that they exit be able to finance all of the cost of the additive trucks without having to enforce of their own cash, they will be able to pass the trucks out their balance sheet if they choose an operating lease, and a lease will prote ct them when the trucks will became old and obsolete. Basically, there are two types of leases that can be chosen from, below is a brief description and requirements of each. Capital Lease This lease is enforce when the agreement for the lease is designed for the lessee acquires the pluss and the finis of the lease.

From the Trucking caller-ups perspective, they will be entering into a capital of the United States of the United States lease if it meets any one of the following quartette conditions as in paragraph 840-10-25-1 of the FASB Codification: 1. At the end of the lease, the lessee becomes the owne r of the asset 2. The lease give lessee an ! choice to obtain the asset for a price that is cheaper than the fair value as dictated by the market forces of the asset 3. The duration of the lease is for a eon time period which is 75 pct or greater of the estimate time for what period the asset is usable. 4. There are minimum fortnightly lease payments. operational Lease In essence anything some other than a Capital lease is an operating lease. The very...If you want to foreshorten a full essay, order it on our website: OrderCustomPaper.com

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