Use the following information for questions.
Yueve's Company is negotiating three leases for store locations Yueve's incremental borrowing rate is 12 percent and the lessor's implicit rate is unkown (it is impracticable to determine)
Each store will have an economic useful life of 30 years.lease payments will be made at the end of each year.Based on the data below properly classify each of the leases as an operating lease or a finance lease.The purchase price for each property is listed as an alternative to leasing.
-Based on this information, which test(s) does Location A pass for classifying the lease as a finance lease.
Definitions:
Irrational Fear
A disproportionate and intense fear of an object, situation, or activity that poses little to no actual danger.
Obsessive-Compulsive Disorder
A mental disorder characterized by unwanted repetitive thoughts (obsessions) and actions (compulsions).
Overwhelmed With Dread
A state of being consumed by intense fear or anxiety about something that seems overpowering.
Extreme Behavior
Actions that are significantly outside the norm, often in a manner that is potentially harmful or dangerous to self or others.
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