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Category > Accounting Posted 20 Jun 2017 My Price 4.00

Capital lease.

we have a 20 year lease and we have determine that it is a Capital lease. AT the end of year 14, we decide to end the lease and purchase the asset at FMV.

How do we handle the outstanding Depreciation and Amortization.

Do we have to start depreciation for the purchase at the remaining life of the useful life?

or do we need to take into consideration that we might have to continue with the previous depreciation.

 

PLEASE INCLUDE EXAMPLES.

Answers

SuperTutor
(15)
Status NEW Posted 20 Jun 2017 04:06 AM My Price 4.00

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