Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. out2b company signed an 4-year lease agreement for

Out2B Company signed an 4-year lease agreement for new vehicle with LeaseCo. The leasing contract...

70.2K

Verified Solution

Question

Finance

image
Out2B Company signed an 4-year lease agreement for new vehicle with LeaseCo. The leasing contract amount to $64.000. At the end of the lease term, the vehicle will revert back to the LeaseCo. The vehicle has a useful life of 5 years and has no salvage value. When signing the lease agreement, the equipment has a fair value of $67,500. An interest rate of 5% and straight-line depreciation are used. Is this a capital or operating lease and why

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Geometry
1.2K views

9 A graphic artist created a design for a flower using four congruent hexagons as...

Geometry
1.2K views

80 O 40 260 to 5 Solve for x 260 CLimbay Bouden 2017

Psychology
1.2K views

Dr. Vegapunk thinks that watching anime (Japanese animated shows) decreases social skills in college students. To...

Electrical Engineering
1.2K views

Determine the following by applying the Fourier convolution property to known Fourier transforms: a. FT {? (t...

Basic Math
1.2K views

Socially conscious investors screen out stocks of alcohol and tobacco makers, firms with poor environmental records,...

Biology
1.2K views

4 Relate DNA replication to how accurate genetic information is passed down through generations a...

Basic Math
1.2K views

X n for any set X OZ OW SON OX

Basic Math
1.2K views

Find the chromatic number of each of the graphs given below I 3

Algebra
1.2K views

A 62-year-old widow is experiencing difficulty paying her bills. Her homestead is paid for, but...

Accounting
1.2K views

Star Inc. sponsors a defined benefit plan where employees vest 25% after 2...

Accounting
1.2K views

Lenny's Llamas purchased 1,500 llamas on January 1,2015. These llamas will be sheared semiannually...

Accounting
1.2K views

Blockchain is a highly regulated technology used in accounting information systems daily. Group of...