I'm working on a case study for an accounting class and need to know whether leased equipment (i.e. airplanes) would be depreciated the same way as purchased equipment? If so, does leased equipment have a salvage value since you can't sell it when you're done?
Tags: case study, accounting class, salvage, Residual value, airplanes, Business Finance
{ 1 comment… read it below or add one }
If in fact the lease is considered a Capital Lease, then it is depreciated just as a purchased asset. But first you would need to know the terms of the lease to determine if it is a Capital or Operating Lease.
You must log in to post a comment.