(3 points)

This is a sales-type lease to lessor because:

Question 17 options:

	The present value of the minimum lease payments is bigger than 90% of the fair value of the leased property
	The collectibility of the payments is reasonably predictable and lessor's performance is complete.
	The fair value of the leased asset is bigger than the book value of the leased asset on lessor's book.
	All of the above.

Question 18 (3 points)

To capitalize this lease transaction, lessee should

Question 18 options:

	Debit an asset account and credit a shareholders' equity account.
	Debit a shareholders' equity account and credit an asset account.
	Debit an asset account and credit a liability account.
	Debit a liability account and credit an asset account.