Polo Publishers purchased a multi-color offset press with terms of $50,000 to be paid at the date of purchase, and a noninterest-bearing note requiring payment of $20,000 at the end of each year for five years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at
Operating lease is a lease/contract where Lessor (original owner), give permission to the Lesse, to use of an asset for a particular period without any change right to ownership.