If an asset had a $20,000 salvage value at the end of the lease and the asset is sold, it would make no cash flow difference whether the asset pool were terminated or remained open.

Question

Quizplus · Accepted Answer

The cash flow difference depends on the tax implications and the accounting treatment of the sale of the asset. If the asset pool remains open, the proceeds from the sale could be used to offset the cost of new assets, potentially affecting tax liabilities and cash flows differently than if the pool were terminated.

If an Asset Had a $20,000 Salvage Value at the End