A retailer leases space in a shopping center on a ten-year lease. The lessee pays a small

Question:

A retailer leases space in a shopping center on a ten-year lease. The lessee pays a small fixed amount per month plus 10% of sales for the previous month. The retailer will likely treat this lease as an operating lease and not a capital lease. Why?


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting an introduction to concepts, methods and uses

ISBN: 978-0324789003

13th Edition

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

Question Posted: