Capital Lease This type of lease is a situation whereby the lessor (owner) transfers the ownership of leased asset to the lessee (user) on the maturity period of terms of lease. This is non-cancellable in nature and it extends to long term and can also be capitalized To determine: the amount of annual lease payments as calculated by lessor.

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Chapter 15, Problem 15.12E

a)

To determine

Capital Lease

This type of lease is a situation whereby the lessor (owner) transfers the ownership of leased asset to the lessee (user) on the maturity period of terms of lease. This is non-cancellable in nature and it extends to long term and can also be capitalized

To determine: the amount of annual lease payments as calculated by lessor.

(b)

To determine

the amount of lease would record as right-of-use asset and lease liability.

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