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Unformatted text preview: equipment has an economic life of 8 years, so by divide those two numbers up with .75 which make the lease term 75% of the asset economic life. The retain the asset at the end of the six year term because the asset cost was since this is a noncancelable lease Flynn will have to pay out all 6 years of p at the end of the six years the Benson company will have obtain 150,000 fo that orginal cost 120,000. ars the lease and the s you’ll come e lessor will 120,000 and payment and or an asset...
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- Fall '08
- 75%, 8 years, 6 years, Benson Company