A tax-oriented lease whereby the lessor achieves its desired rate of return via a combination of the rental payments, depreciation, and the fair market value of the equipment at the end of the origina [..]

The depreciation schedule of the Economic Recovery Tax Act of 1981 (ERTA), modified by the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), that allows accelerated write offs of plant and equ [..]

A FASB 13 accounting classification to be accounted for by a lessee as a purchase and by the lessor as a sales or financing agreement, provided it meets any one of the following criteria: (a) The less [..]

A true lease in which the lessor assumes the depreciation risk. The lessee bears no obligation at the end of the lease. Coterminous:

A guarantee by one corporation to pay the lease obligations of another corporation. Default:

A method for determining the useful life of a piece of equipment. The total depreciation expense is equal to the difference between the initial cost of the unit and its estimated residual or salvage v [..]

The estimated time period leased equipment is expected to be useful. Estimated Residual Value:

The effective lease rate (for the lessee) of the cash flows resulting from a lease transaction. Fair Market Value Purchase Option:

Statement issued by the Financial Accounting Standards Board establishing financial accounting standards for lessees and lessors. Financing Statement (UCC-1):

1) General term applied to most types of equipment leases. Typically, a finance lease is a full-payout, non-cancelable agreement, and the lessee is responsible for maintenance, taxes, and insurance. F [..]