CLFP - CLASS REVIEW STUDY GUIDE 200+ QUESTIONS AND ANSWERS 2023/2024 GRADED A+. CLFP - CLASS REVIEW STUDY 2023 1. When should lessor register as foreign corp?: Within a state ... Good - stock of them Services offered Inspection or repair of property Office/employees Negotiated contracts 2. What is ...
CLFP - CLASS REVIEW STUDY GUIDE 200+
QUESTIONS AND ANSWERS 2023/2024 GRADED A+
,CLFP - CLASS REVIEW STUDY GUIDE 200+
QUESTIONS AND ANSWERS 2023/2024 GRADED A+
When should lessor register as foreign corp? - ANSWER
>>>>Within a state ...
Good - stock of them
Services offered
Inspection or repair of property
Office/employees
Negotiated contracts
What is dode of Hammurabi? - ANSWER >>>>- 1750 BC
- Acknowledges leasing of personal property in his code of laws
- First record of leasing law
Early examples of true lease? - ANSWER >>>>- Phoenicians
shipping experts
- charters covered economic life of ships
- lessee to assume benefits and obligations of ownership
What is Statue of Whales? - ANSWER >>>>- 1284 AD
- leasing personal property
- 1571 defined who owned the lease property
,CLFP - CLASS REVIEW STUDY GUIDE 200+
QUESTIONS AND ANSWERS 2023/2024 GRADED A+
What is Philadelphia Plan? - ANSWER >>>>- 1700's railroads
companies only afford tracks
- Finance from private investors for locomotives/cars
- equipment trusts
- precursor of today conditional sale contract
When & how did Independent Leasing Start? - ANSWER
>>>>- 1900's
- Offer short term contracts/leases
- lessor retain title
- rail cars would be returned at end
- beginning of true/operating lease
- third party leasing companies
What is definition of captive? - ANSWER >>>>- sub of mfg.
primary purpose to finance parents product
What is the benefit of captive? - ANSWER >>>>- Sales aid
- market control
- product differentiation
- Increase gross margin
- Ongoing customer contact
Why did lease re surge in 1950's? - ANSWER >>>>- government
stimulate economy after WWII
- advance in technology in business equipment
- IRS 167
How does IRS 55-540 define true lease? - ANSWER
>>>>P - payment exceed FMV - NOT
, CLFP - CLASS REVIEW STUDY GUIDE 200+
QUESTIONS AND ANSWERS 2023/2024 GRADED A+
A - automatic titletransfer - NOT
I - interest contained in payment - NOT N -
nominal purchase option - NOT
E - equity in lease - NOT
E - excessive lease payments - NOT
What is different between FASB 13 and IRS 55-540? -
ANSWER >>>>-FAB 13 - defines operating lease - ACCT
- IRS 55-540 - defines tax lease - TAX
What is FASB 13? - ANSWER >>>>- 1976 Financial
Accounting Standard Board
- Issued statement 13
- Set criteria by which to classify a lease capital/operating
- defined treatment on financial statements
How does FASB 13 define an operating lease? -
ANSWER >>>>B - bargin purchse option - NOT E -
economic useful life > 75% - NOT
A - automatic title transfer - NOT
P - PV of payments (no resid) > 90% of FMV - NOT
What is AMT? - ANSWER >>>>- Alternative Minimum Tax
- pay greater of regular tax or AMT
- limits depreciation benefit
- prompted growth in operating lease (lessee)
What is definition of Lease - ANSWER >>>>- a transaction in
which use and possession but not title to tangible property, is
transferred for consideration
- USE AN POSSESSION
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