A lease has a term of 8 years with annual payments of $21,400. The asset would cost
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A lease has a term of 8 years with annual payments of $21,400. The asset would cost $131,000 to buy and would be depreciated straight-line to a zero salvage value over 8 years. The actual salvage value is zero. If the firm has a tax rate of 30 percent, what is the incremental cash flow in Year 8 of leasing rather than purchasing?
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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