Which of the following items would not be included in the calculation of the capital lease obligation?
A)bargain purchase option
B)guaranteed residual value
C)executory costs
D)any payments required for failure to renew or extend the lease

Question

Quizplus · Accepted Answer

Executory costs are not included in the calculation of the capital lease obligation because they represent expenses such as maintenance and insurance that are directly related to operating the leased asset, rather than the financing of the lease itself.

Which of the Following Items Would Not Be Included in the Calculation