Chapter 15 Leases
CPA Exam Questions (concluded) 5. a. In a capital lease with a bargain purchase option, the lessee will control the asset for its total useful life. Therefore, the depreciation should be allocated over the 8-year life of the asset. $240,000 cost – 20,000 salvage value = 220,000 / 8 years = $27,500 per year. 6. a. ................
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