Describe the effect of a bargain-purchase option on accounting for a capital-lease transaction by a lessee.

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Describe the effect of a “bargain-purchase option” on accounting for a capital-lease transaction by a lessee.

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Intermediate Accounting

ISBN: 978-0470423684

13th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

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Question Posted: Dec 24, 2010 05:28 AM

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Describe the effect of a bargain-purchase option on accounting for a capital-lease transaction by a lessee.

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If a bargain purchase option exists the lessee must increase the present value of the minimum lease ...View the full answer

Intermediate Accounting

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