How does lessee report the amortization

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Question - Lessee leases printing machine from Lessor. Lessor agrees to provide all maintenance services. Lease payment is $1000 per month. Maintenance service has FMV of $200/month.

Over what period does a Lessee amortize the Right of Use Asset in a Financing lease? Operating lease?

How does the Lessee's amortization of Right of Use Asset differ between Financing lease and Operating lease?

How does Lessee report the amortization and interest components of lease expense on the income statement under an Operating Lease?

How does the Lessee determine the appropriate discount rate to use in accounting for leases?

How does the Lessor's discount rate differ when initial direct costs are capitalized versus when they are not capitalized?

At what amount does a Lessor measure the Investment in Lease asset account in a Sales lease? Direct Financing lease?

In a Sales lease in which the leased asset cost differs from market value at lease inception, how much sales revenue does the Lessor recognize? How much cost of sales does the Lessor recognize?

Reference no: EM132185282

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