Digital x-ray , Science

Assignment Help:

Digital X-Ray, Inc., has introduced a new line of equipment that may revolutionize the medical profession.  Because of the new technology involved, potential users of the equipment are reluctant to purchase the equipment, but they are willing to enter into a lease arrangement as long as they can classify the lease as an operating lease.  The equipment will replace that Digital X-ray, Inc., has been selling in the past.  It is estimated that a 25% loss of actual sales will occur as a result of the leasing policy for the new equipment.

Management must decide to structure the leases so that they can treat them as operating leases.  Some members of management want to structure the leases so that Digital X-Ray, Inc., as lessor, can classify the lease as a sales-type lease and thus avoid a further reduction of income.  Others believe that they should treat the leases as operating leases and minimize the income tax liability in the short term.  They are uncertain, however, as to how the financial statements would be affected under these two different approaches.  They also are uncertain as to how leases could be structured to permit the lessee to treat the lease as an operating lease and the lessor to treat it as a sales-type lease.

1.   You are asked to respond to the questions raised in this mini case.Be sure to cite and paraphrase any authoritative sources in support of your answer.

2.    Please limit your answers to two (2) typed pages.


Related Discussions:- Digital x-ray

Observe the surface of the moon, Observe the surface of the moon :- Use ...

Observe the surface of the moon :- Use the small telescope or a pair of field glasses. Examine the surface of the moon and see if you can see any of its craters and mountains.

Iwgrfwi, amy i paying you for answrs

amy i paying you for answrs

Genotype and phenotype, on my homework I have to create a super baby, and s...

on my homework I have to create a super baby, and so I had to have a female super hero and male super hero. I then have to list traits, hair color, eye color and one power from bot

Recycling of used resources and waste, Recycling of used resources and wast...

Recycling of used resources and waste: Some of the materials once used need not go waste, these can be  re-used. The process through which the waste resources are again made us

Functions of prejudice, Describe in one sentence the contents of the four f...

Describe in one sentence the contents of the four functions of prejudice and apply it in your work place? a) The four function of prejudice encompasses the various attitudes tha

Neuro, A physician notes that in a patient there is impaired vibration and ...

A physician notes that in a patient there is impaired vibration and position sense, astereognosis, and ataxia. The physician noted loss of all sensations in some areas of the patie

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd