Paget Ltd., a public company, signed a five-year lease agreement with Equipco Ltd. for manufacturing equipment that

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Paget Ltd., a public company, signed a five-year lease agreement with Equipco Ltd. for manufacturing equipment that had been specifically designed for a specialized patented manufacturing process. Paget holds the exclusive rights to the manufacturing process. The equipment's estimated economic life is seven years. The equipment will be returned to Equipco at the end of the lease term. Indicate if the lease is a finance lease or operating lease. Explain.
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Accounting Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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