Business
Business, 18.02.2020 20:43, Lolmickles968

Selma leases equipment from ABC Corp. The 4-year lease requires payments of $10,000 per year, beginning at the inception of the lease. The fair value of the equipment at the inception of the lease is $100,000. The equipment has a 6-year life. Selma's incremental borrowing rate is 6%. The lease does not transfer title and does not have a bargain purchase option. How should the lease be classified by Selma?

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Selma leases equipment from ABC Corp. The 4-year lease requires payments of $10,000 per year, beginn...

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