Different aircraft lease transactions that occurred for Western Airways Presented below are three different aircraft lease transactions that occurred for Western Airways in 2011. All the leases start on January 1, 2011. In no case does Western receive title to the aircraft during or at the end of the lease period; nor is there a bargain purchase option. Lessor Utah Insurance Laine Leasing Howard Leasing Type of property 767 Aircraft 727 Aircraft L-1011 Aircraft Yearly rental $8,272,293 $4,954,021 $2,851,861 Lease term 20 years 15 years 23 years Estimated economic life 25 years 25 years 25 years Fair value of leased asset $77,000,000 $49,000,000 $32,000,000 Present value of lease rental payments $73,000,000 $42,000,000 $28,000,000 Instructions (a) Which of the above leases are operating leases and which are finance leases? Explain your answer. (b) How should the lease transaction with Utah Insurance be recorded in 2011? (c) How should the lease transaction with Laine Leasing be recorded in 2011? Economics Assignment Help, Economics Homework help, Economics Study Help, Economics Course Help
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