Use the Following Information for Questions

question 7

Short Answer

Use the following information for Questions
Yueve's Company is negotiating leases for three store locations.Yueve's incremental borrowing rate is 12 percent and the lessor's implicit rate is unknown (it is impracticable to determine).
Each store will have a useful economic 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.

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Definitions:

Older Technologies

Outdated or superseded technological tools or systems still in use within an organization.

Customer Service

Activities and initiatives a company undertakes to enhance customer satisfaction by meeting or exceeding expectations.

Establish And Maintain

The process of creating and consistently upholding a certain level of performance or quality in a given context.

High Standards

A term denoting the setting of ambitious goals or criteria for performance, aimed at achieving superior outcomes.