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 potbelly get hold of options. These be the results of the assignment given to me by you destination week regarding the Trucking company potential unsanded client. I have done the required research on the fiscal Accounting Standards Board (FASB) website regarding acquire structures and current practices as it would have-to doe with 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 necessary 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 example of their own cash, they will be able to pass the trucks move out their balance sheet if they choose an operating lease, and a lease will protect 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 engage when the agreement for the lease is designed for the lessee acquires the summations and the cease of the lease.

From the Trucking bon tons perspective, they will be entering into a gravid of the United States lease if it meets any one of the following four-spot conditions as in paragraph 840-10-25-1 of the FASB Codification: 1. At the end of the lease, the lessee becomes the own er of the asset 2. The lease give lessee an! choice to procure 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 portion or greater of the estimate time for what period the asset is usable. 4. There are minimum fortnightly lease payments. run 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

If you want to get a full essay, visit our page: cheap essay