Assume the following facts relating to a lease: Leased asset,new at inception of lease term.
Estimated useful life,14 years.
Lease term,8 years; asset returns to lessor.
Interest rate implicit in the lease,10 percent (known by lessee).
Lessee's marginal borrowing rate,12 percent.
Amount of each lease payment,$2,000.
Lessor's cost of the leased asset,$15,164.
Market value of leased asset at inception of the lease term,$15,164
Lease payments are due at the end of each period.
From the perspective of the lessee,this lease should be classified as a(n):

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The Answer of Assume the following facts relating to a lease: Leased asset,new at inception of lease term.
Estimated useful life,14 years.
Lease term,8 years; asset returns to lessor.
Interest rate implicit in the lease,10 percent (known by lessee).
Lessee's marginal borrowing rate,12 percent.
Amount of each lease payment,$2,000.
Lessor's cost of the leased asset,$15,164.
Market value of leased asset at inception of the lease term,$15,164
Lease payments are due at the end of each period.
From the perspective of the lessee,this lease should be classified as a(n):

Assume the Following Facts Relating to a Lease: Leased Asset,new