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Depreciation of leased equipment?
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?
1 Answer
- Don GLv 71 decade agoFavourite answer
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.