"Lease it or Buy it?"

• Assume you are the controller of a company with operations throughout North America and the company is considering the acquisition of an aircraft for use by executives. You convince the executive team it is more cost efficient to enter into a long term lease of the aircraft instead of borrowing the money to purchase the aircraft. The team wants to understand the impact of the lease on the financial statements. Describe the accounting for the lease and the financial statement presentation of the lease.