Question
How to recognize and journalize a capital lease? Company can buy the machine for 35 million but choosing to lease instead. Lease terms: -10 year
How to recognize and journalize a capital lease?
Company can buy the machine for 35 million but choosing to lease instead.
Lease terms:
-10 year lease term
-15 year useful life
-500,000 a year payments
-implicit rate is 8%
-option to buy the machine for 1000 when lease ends
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Strategic Managerial Accounting: Hospitality, Tourism & Events Applications
Authors: Tracy Jones, Helen Atkinson, Angela Lorenz, Peter Harris
6th Edition
9781908999023, 978-1908999016
