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Are capital leases depreciated or amortized?

Chloe Brooks | 2023-05-07 23:44:12 | page views：1743
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Benjamin Baker

Works at the International Energy Agency, Lives in Paris, France.
When a lease is capitalized, the lessee creates an asset account for the leased item, and the asset value on the balance sheet is the lesser of fair market value or the present value of the lease payments. ... Over time, the leased asset is depreciated and the book value declines.
2023-05-14 23:44:12
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Gabriel Turner

QuesHub.com delivers expert answers and knowledge to you.
When a lease is capitalized, the lessee creates an asset account for the leased item, and the asset value on the balance sheet is the lesser of fair market value or the present value of the lease payments. ... Over time, the leased asset is depreciated and the book value declines.
Capitalized Lease Method - Investopedia
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