Question: (a) How does a capital lease for equipment affect the lessees statement of cash flows? (b) How would the treatment on the statement of cash

(a) How does a capital lease for equipment affect the lessee’s statement of cash flows?
(b) How would the treatment on the statement of cash flows differ if the contract was identified as a purchase of equipment with a down payment and a long-term note payable for the balance?

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a The interest portion of the lease payments is recorded ... View full answer

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