Question: On January 1 , 2 0 2 4 , Sans Serif Publishers leased printing equipmentfrom First LeaseCorp. First LeaseCorp purchased the equipment fromCompuDec Corporation at

On January 1,2024, Sans Serif Publishers leased printing equipmentfrom First LeaseCorp. First LeaseCorp purchased the equipment fromCompuDec Corporation at a cost of $479,079. The lease agreement specifies six annual payments of $100,000beginning January 1,2024, the beginning of the lease, and on eachDecember 31 from 2024 through 2028. The six-year lease term ending December 31,2029, is equal to theestimated useful life of the equipment. First LeaseCorp routinely acquires electronic equipment to lease toother firms. The interest rate in these financing arrangements is 10%.How should this lease be classified?

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