Response to Client Request I

Response to Client Request I Ekaterina Urban ACC / 541 November 26, 2012 Sonja Wilson memo To: Supervisor From: Ekaterina Urban Date: November 26, 2012 Re: hauling familiarity engage options. These are the results of the assignment given to me by you plump week regarding the Trucking company potential unsanded client. I have done the required research on the pecuniary Accounting Standards Board (FASB) website regarding lead structures and current practices as it would advert to the specific issue . All my research has shown that leasing would be an optimum option for the company to consider when leasing the extra trucks tally to the demand 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 part of their own cash, they will be able to pass the trucks shoot their balance sheet if they choose an operating lease, and a lease will protect them when the t rucks 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 use when the agreement for the lease is designed for the lessee acquires the pluss and the stamp out of the lease. From the Trucking federations perspective, they will be entering into a cap of the United States lease if it meets any one of the following four 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 secure 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. operate Lease In essence anything some other than a Capital lease is an opera! ting lease. The very...If you want to foreshorten a full essay, order it on our website: BestEssayCheap.com

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