Question: Given the following data, determine the appropriate lease classification. Asset FMV and book value Lease term Asset life Guaranteed salvage value Lessee's estimated salvage value

Given the following data, determine the appropriate lease classification. Asset FMV and book value Lease term Asset life Guaranteed salvage value Lessee's estimated salvage value $40,000 6 years 9 years $5,000 $7,000 No Bargain Purchase Option or title transfer. Two-month renewal option exists; lessee reasonably certain to renew. Present value of lease payments 92% of Asset FMV. Lessor has foreseeable alternative use for asset. Select one: Na. Short-term lease b. Finance lease c. Operating lease

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