Discuss the positives and negatives of capitalizing leases

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Reference no: EM13296254

One alleged advantage of leasing voiced in the past is that it kept liabilities off the balance sheet, thus making it possible for a firm to obtain more leverage than it otherwise could have. This raised the question of whether or not both the lease obligation and the asset involved should be capitalized and shown on the balance sheet. Discuss the positives and negatives of CAPITALIZING leases and the related leased assets.

Reference no: EM13296254

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