given the information below, what type of lease is this for the lessee? Lease term (years) 6 Remaining economic life (years) 10 Present value of lease payment $176,000 Fair value leased asset $200,000 Residual value (unguaranteed) $14,000 Bargain purchase option No Ownership transfer at end of lease. No a. sales-type lease b. short term lease c. operating lease d. finance lease
given the information below, what type of lease is this for the lessee? Lease term (years) 6 Remaining economic life (years) 10 Present value of lease payment $176,000 Fair value leased asset $200,000 Residual value (unguaranteed) $14,000 Bargain purchase option No Ownership transfer at end of lease. No a. sales-type lease b. short term lease c. operating lease d. finance lease
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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given the information below, what type of lease is this for the lessee?
Lease term (years) 6
Remaining economic life (years) 10
Present value of lease payment $176,000
Fair value leased asset $200,000
Residual value (unguaranteed) $14,000
Bargain purchase option No
Ownership transfer at end of lease. No
a. sales-type lease
b. short term lease
c. operating lease
d. finance lease
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