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A. What is the difference between a capital lease and an operating lease? Explain the criteria for differentiation. Explain. B. In determining the minimum lease

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A. What is the difference between a capital lease and an operating lease? Explain the criteria for differentiation. Explain. B. In determining the minimum lease payments, there are two discount rates: a. the implicit rate of the lessor and b. The incremental borrowing rate of the lessee. Define and explain them. Which one do you use and when? C. What is a bargain purchase option, in the context of a lease contract? Correct answers without proper explanation will be marked 0

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