The Frank Edwards Co

question 222

Multiple Choice

The Frank Edwards Co. is considering a lease wherein they would be responsible, as lessee, for providing the maintenance, taxes, insurance, and equipment operator. Given this scenario, which
One of the following should be included in the lease-purchase analysis?

• A) The amount of the annual depreciation.
• B) The amount of the annual insurance premium.
• C) The cost of the weekly maintenance on the equipment.
• D) The employee benefits provided to the machine operator.
• E) The amount of the depreciation tax shield.