a. For financial reporting purposes, what determines if a lease is treated as an operating lease or

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a. For financial reporting purposes, what determines if a lease is treated as an operating lease or capital lease?

b. If a lease for equipment that has a 15-year expected economic life has a lease term of two years, how will the lease be treated for financial reporting purposes?

c. If a lease for equipment allows the lessee to buy the equipment at the end of the lease term for $1, how will the lease be treated for financial reporting purposes?

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Akshay Agarwal

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