When you capitalize an operating lease, do you use the least of market rate or implied lease rate or the higher? I cant remember.
lower of market, afair
use the YTM on recently issued debt or lower of market / fair
you need to make the PV higher - so use the lower rate… If the PV > 90% of Fair Value - you capitalize, right… SNOB principle:: Seventy five percent of Life Ninety percent of Value Ownership transfer at the end of lease Bargain Purchase option