Equipment purchased by a lease agreement is capitalized at the beginning of the lease at the total lease cost. The leased equipment is listed under an appropriate category, e.g. computer mainframe. The lease purchase equipment is tagged.  The University currently has a Master Lease Agreement with a financing company, offering favorable terms and conditions, which has a buyout option at the end of the lease/purchase.  In this case, the department does not have to return or trade-in the equipment but will own the equipment when the loan has been satisfied.  Please contact Purchasing for more information on capital leases.