Answer :
Answer:
8 years
Explanation:
We are informed from the question about a leased kitchen equipment under a five-year lease with an option to renew for three years at the end of five years and an option to renew for an additional three years at the end of eight years. The first three-year renewal option can be exercised for one-half the original and usual rate.
In this case, the length of the lease term that Trussel Creations should assume in recording the transactions related to the lease is 8years, because that's is the designated lenghth of the lease which can be regarded as a longer term lease. Lease agreement is different from rental agreement because it has a longer term. It is a contractual arrangement between lessee and lessor, whereby the lesssee pay for an answer lease to him/her. The asset could be vehicles industrial equipment and so on. The standard and common lease period is usually 1year. But in case of shorter term and longer term lease it is longer or shorter than 1 year. However in the scenerio in the question it's a longer term.