Use the Following Information for Questions

question 63

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 B pass for classifying the lease as a finance lease.

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Definitions:

Describing Feelings

The process of identifying and communicating one's emotional state using specific and accurate verbal expressions.

Sales Associate

An employee in a retail or wholesale business responsible for selling products or services to customers, offering advice, and assisting with purchases.

Constructive Criticism

An approach to providing feedback that is intended to help someone improve, focusing on positive ways to make changes.

I-statements

A communication technique used to express one's feelings and needs assertively and non-defensively by focusing on the speaker's experiences rather than accusing or blaming others.