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:

Individuals

Separate and distinct persons or entities.

Training

The process of teaching or developing in oneself or others, any skills and knowledge or fitness that relate to specific useful competencies.

Borg Scale

A numerical scale that measures perceived exertion or how hard you feel your body is working during physical activity.

Subjective Measure

An assessment based on personal views, feelings, or opinions, rather than objective criteria or measurable data.