Lease - School Assignment
by Waqar
(Lahore, Pakistan)
Which type of lease these are, please explain.
(a) Firdous limited is intended to acquire an asset for one season that is consisted of 6 months. Hefty amount is needed to acquire the asset so, company decided to acquire it on lease. After six month period, leasing agreement will be expired without any possession
(B) PK Plus limited acquire asset on lease from Damas leasing company. PK plus has an option to purchase the asset at end of lease term, on below its fair price
(C) Admiral limited got an asset on lease. According to the expert the economic useful life of asset is not more than 12 years. Whereas, term of lease is for 10 years. Furthermore, company has no intention to purchase the asset at the end of lease term.
(D) Pine Corporation acquired an asset on lease without intention to purchase it at expiry of series of rental payments. Fair value of asset is Rs.100,000 and rental payment is Rs.80,000.
Jade company Ltd. acquired an assets form its associated company BBG. Jade company will use the asset for 6 year and will pay monthly installments to BBG
Requirement: Is this agreement is lease agreement? Discuss.
Hi Wagar,
It looks like you taking a bookkeeping or accounting class and looking for help with your assignment. Sorry, no can do. You'll have to work your way through the assignment. If I respond to the question, you will be cheating yourself of a learning opportunity. Good luck on your assignment.
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