Which one of the following is not a cash flow item in financial lease analysis?
A)the lessor's repayment schedule for financing the asset.
B)the value of the salvage to the lessor.
C)the CCA tax shelters of the lessor.
D)the lease payment's tax shelter impacts for the lessee.

Question

Quizplus · Accepted Answer

The lessor's repayment schedule for financing the asset is not a cash flow item in financial lease analysis as it represents the internal calculations of the lessor and does not impact the cash flows of either party in the lease transaction. The value of salvage to the lessor, the CCA tax shelters of the lessor, and the lease payment's tax shelter impacts for the lessee are all cash flow items that need to be considered in financial lease analysis.

Which One of the Following Is Not a Cash Flow