In Intermediate Accounting by Whalen on Cengage, chapter 20, homework question 4, how do you calculate the selling price? Sale type lease for 8 years.  Lease pmt due at the end of the year $32,000/yr.  14% interest.  Cost of the equipment is $110,000 and estimate fair value at the end of the lease is $20,000.

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Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.