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CLFP - chapters 1 and 2 WITH 100- SURE ANSWERS
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CLFP - chapters 1 and 2 WITH 100- SURE ANSWERS
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10/5/24, 8:06 AMEUNICE
CLFP - chapters 1 and 2 WITH 100% SURE ANSWERS
Terms in this set (33)
Sumerians produced leases on clay tablets for agricultural tools, land and water
What is Sumerians application of leasing?
rights, oxen, etc.
Record of Babylon leasing law 1700BC code of Hammurabi
Phoenicians Ship charter to obtain a crew and ship
Cover economic life of ship & required lessee to assume benefits and obligations of
Long term charter
ownership
1284AD Statue of Wales leasing of personal property - 1st time leasing code was
recognition of English common law
written in English
Brought opportunities for financing for railroads. In 1700's railroad brought first real
Industrial Revolution
growth of leasing to the US
Investors providing financing for locomotives and railcars. Banks or trust companies
Equipment Trusts administered trusts, issuing trust receipts which represented the right of the holder
to receive a return of principal and interest on invested funds
Railroad finance plan precursor of conditional sales contract, equipment finance
Philadelphia Plan
leasing and money over money leases
independent leasing companies Developed 1900's. True or operating leases.
Vendor lease program After WWII, upgrade equipment or operations. Leasing directly to end users
2 major trends 1.government effort to stimulate economy by issuing IRS 167 which
General Trends in development of modern gave Equipment owner ability to accelerate depreciation. 2. Advance technology- us
leasing leasing Corp was first to take advantage of tax benefits ownership while passing
right of use of equipment and expense of maintenance to someone else
Purchased of capital equipment credit to offset total tax liability. Initially 7% could be
deduced from net tax due. True leases got ITC lowering tax payment and greater net
Investment tax credit ITC 1962
earnings. Fed took away and granted based on want/need to stimulate capital
expenditures
Eliminated ITC - companies began keeping 2 sets of books, 1 for tax
Tax Reform Act of 1986
liability(calculated less expenses and deductions, paying tax on differences.)
Company must do 3rd calculation. AMT to pay the greater of regular tax or amt.
Alternative minimum tax AMT
under amt depreciation is limited
Created hundreds of asset categories and prescribed useful for life of assets,
Asset Depreciation Range ADR 1972 providing lessor with a method for selecting useful life for depreciation that couldn't
be challenged by the IRS
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