Question: Seal Co . entered into a 1 5 - year lease agreement for a new piece of equipment worth $ 8 0 0 , 0

Seal Co. entered into a 15-year lease agreement for a new piece of equipment worth $800,000. At the end of the lease, Seal will have the option to purchase the equipment. Which of the following would require the lease to be accounted for as a finance lease under U.S. GAAP
The present value of the minimum lease payments is $640,000
The lease includes an option to prochase stock th the company
The purchase option at the end of the lease is above fair market value
The estimated useful life of the lease asset is 18 years.
Seal Co . entered into a 1 5 - year lease

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