Question: Given the following data, determine the appropriate lease classification. Asset FMV and book value Lease term $40,000 6 years 9 years $5,000 $7,000 Asset life

Given the following data, determine the appropriate lease classification. Asset FMV and book value Lease term $40,000 6 years 9 years $5,000 $7,000 Asset life Guaranteed salvage value Lessee's estimated salvage value No Bargain Purchase Option or title transfer. Present value of lease payments 82% of Asset FMV. Lessor has no foreseeable alternative use for asset. Select one: a. Short-term lease b. Finance lease c. Operating lease

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