Information has been gathered for three leases that will be accounted for through straight-line depreciation:

Required:
For purchase option included in the lease contract and lease 2, the exercise of option reasonably certain. For lease 3, the exercise of the option not reasonably certain. For each leased asset, choose a depreciation period.

	Lease 1		Lease 2		Lease 3
Initial lease term	6	years	6	years	13	years
Renewal option	n/a		4	years	6	years
Economic life of the leased asset	7	years	15	years	20	years
Purchase option included in the lease contract	Yes		No		No
Depreciation term	?	years	?	years	?	years