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Discuss and answer at least two of the questions listed below in detail. 1. How does...

Discuss and answer at least two of the questions listed below in detail.

1. How does the residual value impact the classification of minimum rental payments by the Lessor and the computation of the amount to be capitalized by the Lessee? How do the Lessor and Lessee account for depreciation under operating and capital leases?

2. What are the disclosure requirements of Leases for both the Lessee and Lessor? See the airlines industry for examples.

3. Explain the distinction between a direct-financing lease and a sales-type lease for a Lessor.

4. Describe the effect of a bargain-purchase option on accounting for a capital lease transaction by the lessee

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