Question: QUESTION 12 Based on the following information how is the lease classified for the lessee? Lease Terms (years) Useful Life (years) Present value of Lease

QUESTION 12 Based on the following information how is the lease

QUESTION 12 Based on the following information how is the lease classified for the lessee? Lease Terms (years) Useful Life (years) Present value of Lease Payments Fair Value of leased asset Residual Value (unguaranteed) Bargain Purchase Option Ownership Transfer at end of lease 7 10 24,500 26,000 4,000 NO No Investing Lease Sales-type lease Operating Finance lease

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