Accounting Principles Homework Problems Chapter 15 1. Below are three different lease transactions that occurred for Hollman Corporation in 2020. Assume that all lease contracts start on January 1, 2020. In no case does Hollman receive title to the leased properties during or at the end of the lease term. Type of property Yearly rental Lease term Estimated Economic Life Fair value of lease asset Present value of the lease rental payments Bargain purchase option Heath Office Computer Printers $5,000 6 years 7 years $27,500 Lessor Dale Co. Equipment $4,200 4 years 7 years $19,000 Joe's Auto Delivery Van $3,700 2 years 5 years $11,000 $26,000 None $13,000 None $6,400 None Instructions a. Which of the above leases are operating leases and which are capital leases? Explain why! b. How should the lease transaction for Dale Co. be recorded in 2020? c. How should the lease transaction for Heath Office be recorded on January 1, 2020