Concept explainers
Concept Introduction:
Capital Leases:
Capital lease refers to the funding by lessor to lessee for the purchase of any asset. The rights of ownership is with the lessee and lessor is entitled only to receive an interest for the amount lent for financing. Capital leases are long term in nature and are useful for assets that not become obsolete in short term due to technological advancement or other reasons. Machinery is good example for Capital Leases.
The lessee records the leased property as an asset and payment of interest for the fund borrowed from the lessor as a liability in the accounting records of the company.
To discuss:
The

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Chapter 14 Solutions
FUNDAMENTAL ACCT PRIN CONNECT ACCESS
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