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Figure 8.2
-In Figure 8.2, base 2 (and ONLY the base) is covalently bound/attached to
Executory Costs
Expenses incurred in maintaining the terms of a lease, typically including insurance, maintenance, and taxes paid by the lessee.
Guaranteed Residual Value
The assured value that an asset will have at the end of its lease term, guaranteed by a party, often the lessee or manufacturer.
Bargain Purchase Option
An option in a lease agreement that allows the lessee to purchase the leased asset at a price significantly below its fair market value at the end of the lease term.
Capital Lease Obligation
A financial commitment that a lessee must recognize on their balance sheet for a lease considered a purchase of an asset rather than a rental, due to its terms meeting certain criteria.
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