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This Lease Would Be Classified as A(n)

Question 23

Multiple Choice

This lease would be classified as a(n) :


A) operating lease because the asset will be obsolete.
B) operating lease because there is not amortization.
C) leveraged lease because it is being financed.
D) financial lease because the lease life is greater than 75% of the economic life.
E) sale and leaseback because the company gets full use of the asset.

Correct Answer:

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