On January 1, 2019, Wynn Manufacturing Leased a Floor of a Building

question 129

Multiple Choice

On January 1, 2019, Wynn Manufacturing leased a floor of a building for use in its North American operations from Easymoney Bank. The 9-year, noncancellable lease requires annual lease payments of $12,000, beginning January 1, 2019, and at each January 1 thereafter through 2027. The lease agreement does not transfer ownership, nor does it contain a purchase option. The floor of the building has a fair value of $85,000 and an estimated remaining life of 10 years. Easymoney Bank's implicit rate of 11% is known to Wynn.
What is the type of lease for the lessee?

• A) sales-type lease
• B) operating lease
• C) finance lease
• D) direct financing lease

---

Definitions:

Diversity Issues

Concerns or challenges that arise from differences in culture, race, sexuality, gender, and other identities among individuals.

Feminist

A person who supports the advocacy of women's rights on the ground of the equality of the sexes.

Traumatic Experiences

Traumatic Experiences involves events that cause psychological, physical, or emotional distress, significantly impacting an individual's well-being and functioning.

Observable Symptoms

Signs of a condition or disease that can be seen or measured, often forming the basis for diagnosis.