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Bain Co. entered into a 10-year lease agreement for a new piece of equipment worth $500,000.?

At the end of the lease, Bain will have the option to purchase the equipment. Which of the following would require the lease to be accounted for as a capital lease?  

A. The lease includes an option to purchase stock in the company.

B. The estimated useful life of the leased asset is12 years. 

C. The present value of the minimum lease payments is $400,000.

D. The purchase option at the end of the lease is at fair market value. 

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Question added by هيثم ناجى , محاسب اول , الفيوم لصناعة السكر
Date Posted: 2015/07/25
Deleted user
by Deleted user

Option B is the right answer .

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