Question
We have a Capital Lease, 20 years, Asset life 28. Depreciation based on 20 years We are planning to end the lease at the end
We have a Capital Lease, 20 years, Asset life 28. Depreciation based on 20 years We are planning to end the lease at the end of the 14 year. and Purchase the asset at NPV
What is the accounting for the termination? What happens with the outstanding depreciation and unamortized balance?
Do we start a new depreciation for the remaining useful life of the asset,28-14=14 years?
Do we continue depreciating the original capital lease?
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Using Microsoft Excel and Access 2016 for Accounting
Authors: Glenn Owen
5th edition
1337109048, 1337109045, 1337342149, 9781337342148 , 978-1337109048
