Response to Client Request I

Response to Client Request I Ekaterina Urban ACC / 541 November 26, 2012 Sonja Wilson memorandum To: Supervisor From: Ekaterina Urban Date: November 26, 2012 Re: hauling plenty convey options. These be the results of the assignment given to me by you stopping point week regarding the Trucking company potential unsanded client. I have done the required research on the monetary Accounting Standards Board (FASB) website regarding let structures and current practices as it would fix 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 fatality 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 recitation of their own cash, they will be able to pass the trucks make their balance sheet if they choose an operating lease, and a lease will protect th em 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 practice when the agreement for the lease is designed for the lessee acquires the pluss and the remove of the lease.

From the Trucking companions perspective, they will be entering into a capital of the United States lease if it meets any one of the following foursome conditions as in paragraph 840-10-25-1 of the FASB Codification: 1. At the end of the lease, the lessee becomes the owner of the asset 2. The lease give lessee an choice to proc! ure 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 per centum 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: BestEssayCheap.com

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