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Delta inc. routinely leases equipment made by competitors in order to reverse-engineer design features Delta may want to incorporate in its own proc development cycle and involves disassembling then later reassembling the equipment. LeaseCo. leases such equipment to Delta under a 12 -month lea Deita will have the option to purchase the equipment for less than its expected fair value at that time. Delta Company is located in an area where comien equipment at the end of Delta's product development cycle, and Delta's management wishes to focus solely on the manufacture ant As a short-term lease. As an operating lease. Not enough information to decide. Under a fair value hedge, the change in the fair value of the hedging derivative is ignored. reported under AOCl in the balance sheet. reported under retained earnings in the balance sheet. reported in the income statement