1. Minnetonka Company leases an asset. Information regarding the lease:
   The fair value of the asset: is $400,000.
2. The useful life of the asset: 6 years with no salvage value.
4. The lease term is 5 years.
6. Annual lease payments are $60,000
8. Implicit interest rate: 11%.
10. Minnetonka can purchase the asset at the end of the lease period for $50,000.

What type of lease is this?

Multiple Choice

1. Short term.
3. Long term.
5. Operating.

Answer rating: 100% (QA)

Answer Finance In a finance lease agreement owne... View the full answer