Question $15$

$2$ pts

A lease that formally involves the lender in providing debt capital to finance the lessor's purchase of the leased asset is a$($n$)$:

$$custom hiring.

$$share lease.

$$leveraged lease.

$$operating lease.

Question $16$

$2$ pts

Leases are capitalized on the balance sheet if any of these conditions are met, except:

$$the present value of rental payments at the start of the lease exceeds $75\%$ of the estimated fair market value of the leased asset.

$$the lease transfers ownership of the asset to the lessee by the end of the contract.

$$the term of the lease equals or exceeds $75\%$ of the assets estimated economic life.

$$the lease contains an option for the lessee to purchase the asset at a bargain price.

Question $17$

$2$ pts

When comparing expenses between operating and capital leases,

$$total expenses are the same, but the timing of expenses is different.

$$total expenses of capital leases are higher than operating leases.

$$total expenses are different, and the timing of expenses is different.

$$total expenses of operating leases are higher than capital leases