XYZ Company leased equipment to West Corporation under a lease agreement that qualifies as a capital lease to West but not as a result of a bargain purchase option or a title transfer.The present value of the asset is $600,000.The expected economic life of the asset is 10 years.The lease term is five years.Using the straight-line method,what would West record as annual depreciation?
A)$120,000.
B)$61,000.
C)$60,000.
D)$0.

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The Answer of XYZ Company leased equipment to West Corporation under a lease agreement that qualifies as a capital lease to West but not as a result of a bargain purchase option or a title transfer.The present value of the asset is $600,000.The expected economic life of the asset is 10 years.The lease term is five years.Using the straight-line method,what would West record as annual depreciation?
A)$120,000.
B)$61,000.
C)$60,000.
D)$0.

XYZ Company Leased Equipment to West Corporation Under a Lease