Explore BrainMass

Explore BrainMass

    What are the four conditions that can create capital lease?

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What are the four conditions that can create capital lease? And, how is a capital lease different from an operating lease?

    One citation (APA format)

    © BrainMass Inc. brainmass.com March 4, 2021, 11:46 pm ad1c9bdddf
    https://brainmass.com/business/leasing/four-conditions-create-capital-lease-452680

    Solution Preview

    What are the four conditions that can create capital lease? And, how is a capital lease different from an operating lease?

    Four distinct conditions qualify a lease as a capital lease. If any one of the four conditions is met, the lease must be accounted for as a capital lease, and not as an operating lease. The first condition is that if the lease agreement transfers title to the lessee at the end of the lease period, it is a ...

    Solution Summary

    What are the four conditions that can create capital lease? And, how is a capital lease different from an operating lease?

    One citation (APA format)

    $2.49

    ADVERTISEMENT