A company was considering two options for leasing equipment for their factory. The illustration shows three columns. The first column gives type of information. The second column is titled Lease A and the third column is titled Lease B. The first line in the column is titled Lease term in years. In the second column, under the title Lease A the number 8 is shown. In the third column, under the title Lease B, the number 2 is shown. The next line is titled Estimated useful life in years. In the second column, under the title Lease A the number 11 is shown. In the third column, under the title Lease B, the number 5 is shown. The next line in the illustration is titled Fair market value. Under the Lease A column, the amount $20,000 is shown and under the Lease B column, the amount $20,000 is shown. The next line in the illustration is titled Present value of lease payments. Under the Lease A column, the amount $17,000 is shown and under the Lease B column, the amount $9,000 is shown. The last line of the illustration is titled Bargain purchase option. Under both the Lease A and