This question has been answered by Expert on Jan 27, 2011. View Solution
posted a question
When should a business capitalize a lease under US GAAP? What criteria need to be met in order to capitalize a lease under US GAAP? What are the advantages and disadvantages of capitalizing leases from the standpoint of the lessee?

1-2 paragraphs
Expert answered the question
Dear Student,...  View Full Answer

Download Preview:

For tax purposes and financial statement if it meets at least one of the following criteria a
business capitalize a lease under US GAAP:
1. Ownership transfer test. By the end of the lease term the...