Use the Following Information for Questions

question 83

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 C pass for classifying the lease as a finance lease.

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Marginal Cost

The cost increase attributed to the manufacture of an additional product or service unit.

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