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American Public University Operations And Supply Chain Management Assignment Help -


Question - Chapter 21 Salaur Company is evaluating a lease arrangement being offered by TSP Company for
use of a computer system. The lease is noncancelable, and in no case does Salaur receive title to the
computers during or at the end of the lease term. The lease starts on January 1, 2011, with the first
rental due at the beginning of the year. Additional information related to the lease is as follows: Yearly
rental $3,557.25 Lease term 3 years Estimated economic life 5 years Purchase option $3,000 at end
of 3 years, which approximates fair value Renewal option 1 year at $1,500; no penalty for
nonrenewal; standard renewal clause Fair value at inception of lease $10,000 Cost of asset to lessor
$10,000 Residual value Guaranteed '0' Unguaranteed ...Read More

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