Capital Leases and Operating Leases, accounting assignment help
Capital Leases and Operating Leases, accounting assignment help
Imagine you are the senior accountant at an organization and management is
considering leasing some equipment; however, management is unsure of the impact
that a capital lease would have on the company. Briefly describe the manner in
which a capital lease would be accounted for by the company both at inception of
the lease and during the first year of the lease, assuming that lease transfers
ownership of the property to the lessee at the end of the lease.