Ben's company purchased a new Boogie Board extruder machine. They put in raw materials and a programmed design and it uses 3D printing to create the board. The company would not sell the machine to Ben. They will only "rent" it. They required a payment of $100,000 when he signed the contract which lets him use the machine for four years. He will make a final payment of $400,000 at the end of the fourth year when they pick up the machine. 

How should Ben account for this item throughout its life?

Answer rating: 100% (QA)

Ben should account for the Boogie Board extruder machine as an operating lease given that he does no... View the full answer