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Question
Present value interest factors are:The Pepper lease is a/an
A. operating lease because the lease value is less than 90% of the fair value of the asset.
B. capital lease because the lease value is 90% of the fair value of the asset.
C. operating lease because the asset reverts to Blue at the end of the lease.
D. capital lease because the lease term is more than 75% of the life of the asset.
Answer
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