A capital lease is a lease of property,plant,or equipment that is in effect an installment purchase.

Name: A capital lease is a lease of property,plant,or equipment that is in effect an installment purchase.
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A capital lease is structured in a way that the lessee essentially pays off the cost of the asset over time, similar to an installment purchase or loan. At the end of the lease term, the lessee usually has the option to purchase the asset outright.

A Capital Lease Is a Lease of Property,plant,or Equipment That