Leases - Capital Lease Lesee Flashcards

1
Q

What does the lessee record the asset at

A

Present Value of future cash flows

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

If title is being transferred then

A

Depreciate over entire life instead of leased life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What interest does the lessee use?

A

Incremental borrowing rate

Unless the implicit rate by the lessor is known and less

How well did you know this?
1
Not at all
2
3
4
5
Perfectly