A trucking company leases a hauling rig from the manufacturer for a three-year period. The trucking company
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A trucking company leases a hauling rig from the manufacturer for a three-year period. The trucking company pays a monthly rental and guarantees a certain minimum resale value of the rig at the end of the three years. The trucking company will likely treat this lease as a capital lease and not an operating lease. Why?
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The present value of the minimum lease payments includes both the monthly rental and the m...View the full answer
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Related Book For 
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
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