A company was considering two options for leasing equipment for their factory. If the company chooses to go with Lease B, which of the following accounts would NOT be affected? Assume they are using IFRS.

• A :

  Depreciation Expense

• B :

  Lease Liability

• C :

  Interest Expense

• D :

  Equipment Rental Expense

Q 15.25: A company was considering two options for leasing equipment for their factory. Lease term in years Estimated useful life in years Fair market value Present value of lease payments Bargain purchase option Lease A 8 11 $20,000 $17,000 no Lease B 2 5 $20,000 $9,000 no If the company chooses to go with Lease B, which of the following accounts would NOT be affected? Assume they are using IFRS. A Depreciation Expense B Lease Liability C Interest Expense D Equipment Rental Expense