Jay's lease payments are made at the end of each period. Jay's liability for a capital lease would be reduced periodically by theA. Minimum lease payment less the portion of the minimum lease payment allocable to interest. B. Minimum lease payment plus the amortization of the related asset. C. Minimum lease payment less the amortization of the related asset. D. Minimum lease payment.

Question

Nguyen

Business

15 March, 20:28

Jay's lease payments are made at the end of each period. Jay's liability for a capital lease would be reduced periodically by theA. Minimum lease payment less the portion of the minimum lease payment allocable to interest. B. Minimum lease payment plus the amortization of the related asset. C. Minimum lease payment less the amortization of the related asset. D. Minimum lease payment.

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Answers (1)

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Tatiana Wiley · Answer 1

A is the correct option.

Explanation:

Lease payment is similar to rent which is dictated under the contract between the two parties, which grants participants the legal right for using the real estate holding computers, software and other assets for a specified period of time. The time period for paying lease payment can range a monthly basis to long lengths of 100 years or more. The lease payment is decided by factors such as assets' value, discount rates, and the lessee's credit score.