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Business, 16.04.2021 04:00 CoreyHammond584
On January 1, 2018, Dexter, Inc. signs a 10-year noncancelable lease agreement to lease manufacturing equipment from Garr. (a) The agreement requires equal rental payments at the end of each year. (b) The fair value of the equipment on January 1, 2018 is $3,000,000. (c) The equipment has an estimated economic life of 10 years. Dexter depreciates similar equipment on the straight-line method. (d) At the termination of the lease, the title to the equipment will be transferred to the lessee. (e) Garr Co. set the annual rental to insure a 10% rate of return. (f) The yearly rental payment includes $10,000 of executory costs related to taxes on the property. From the lessee's viewpoint, what type of lease exists in this case? Question 13 options: Sales type lease Sales-leaseback Capital lease Operating lease
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On January 1, 2018, Dexter, Inc. signs a 10-year noncancelable lease agreement to lease manufacturin...
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