Question: On January 1 , 2 0 2 3 , Wynn Manufacturing leased a floor of a building for use in its North American operations from

On January 1,2023, Wynn Manufacturing leased a floor of a building for use in its North American operations from Easymoney Bank. The 9- year, noncancellable lease requires annual lease payments of $12,000, beginning January 1,2023, and at each January 1 thereafter through 2031.
The lease agreement does not transfer ownership, nor does it contain a purchase option. The floor of the building has a fair value of $85,000 and an estimated remaining life of 10 years. Easymoney Bank's implicit rate of 11% is known to Wynn.
What is the type of lease for the lessee?
A. sales-type lease
B. operating lease
C. direct financing lease
D. finance lease
On January 1 , 2 0 2 3 , Wynn Manufacturing

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