The Following Are the Characteristics of a Lease Required:
Determine the Present Value of Minimum Lease Payments (MLP)and

question 94

Essay

The following are the characteristics of a lease:
$$\begin{array} { | l | l | } \hline \text { Fair value of leased asset } & 150,000 \\\hline \text { Lease payments } & 25,500 \\\hline \text { Lease term } & 7 \\\hline \text { Payment frequency } & \text { Antual } \\\hline \text { Payment timing } & \text { End of year } \\\hline \text { Guaranteed residual value } & \text { None } \\\hline \text { Interest rate implicit in lease } & 8 \% \\\hline\end{array}$$
Required:
Determine the present value of minimum lease payments (MLP)and the appropriate classification of this lease for the lessee.

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Definitions:

Big Five Personality Traits

are five broad dimensions of personality used to describe human character traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Responsible, Dependable, Careful

describes attributes of an individual who is reliable, can be trusted to complete tasks, and takes precautions to avoid mistakes.

Projection

The act of estimating or predicting future trends based on current or historical data.

Personal Attributes

Characteristics or qualities that define an individual, including personality traits, skills, and values.