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Bondo Manufacturing Has Just Signed a Lease Agreement with MIPS

Question 36

True/False

Bondo Manufacturing has just signed a lease agreement with MIPS Computers. Bondo agreed to
pay $15,000 per month for 12 months. The purchase price of the equipment is $400,000. According
to the lease agreement, MIPS will pay property taxes and insurance on the equipment. This lease is
most likely a financial lease.

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