The SAS Co. entered into a lease on 1/1/09 with semiannual payments beginning 6/30/09. The leased equipment had a cost/FMV at inception of $1.2…
The SAS Co. entered into a lease on 1/1/09 with semiannual payments beginning 6/30/09. The leased equipment had a cost/FMV at inception of $1.2 million. Further assume that SAS knew the lessor’s implicit rate of 6%. SAS has treated this as an operating lease from the very beginning. Their auditors barely looked at this lease at 12/31/09 (SAS year-end). SAS has new auditors for their […]