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  3. buffalo company manufactures a check-in kiosk with

buffalo company manufactures a check-in kiosk with an estimated economic life of 12 years and...

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Accounting

buffalo company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to national airlines for a period of 10 years. the normal selling price of the equipment is $298,352, and its unguaranteed residual value at the end of the lease term is estimated to be $18,300. national will pay annual payments of $40,000 at the beginning of each year. buffalo incurred costs of $185,300 in manufacturing the equipment and 43,700 in sales commissions in closing the lease. buffalo has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 8% discuss the nature of this lease in relation to the lessor

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