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5 terms

acct ch 21 (31-35)

STUDY
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maintenance.
property taxes.
insurance.
all of these.
31. Executory costs include
use either its incremental borrowing rate or the implicit rate of the lessor, whichever is lower, assuming that the implicit rate is known to the lessee.
32. In computing the present value of the minimum lease payments, the lessee should
a guaranteed residual value and depreciate over the term of the lease.
33. In computing depreciation of a leased asset, the lessee should subtract
capital method will cause debt to increase, compared to the operating method.
34. In the earlier years of a lease, from the lessee's perspective, the use of the
asset's remaining economic life.
35. A lessee with a capital lease containing a bargain purchase option should depreciate the leased asset over the