Question: Given the information provided in Table 1: l. 2. What is the annual rate of interest being charged to the hospital? The total interest paid


Given the information provided in Table 1: l. 2. What is the annual rate of interest being charged to the hospital? The total interest paid over the entire term of the lease? Given this rate of interest, give some reasons on why or why not the hospital should accept this lease contract. Is this a good deal for the lessee? Assume that the hospital has a current borrowing rate of 3.75% is this a capital lease or operating lease? Please explain each of the criteria and your conclusion based on ABC 840. Assume a 7 year life to the equipment, that there is no transfer of ownership to the lessee at the end of the lease term, and that there is no bargain purchase option. Why would a hospital care whether it was a capital lease or an operating lease? When would one be an advantage over the other
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
