Brentwood Industries is selling its tool and die equipment to Upward Financial and then leasing that equipment from Upward for a period of 10 years, which is the useful remaining life of the equipment. Which type of lease arrangement is this? A) Operating lease B) Straight lease C) Sate and leaseback D) Leveraged lease E) Tax-oriented lease You are comparing a lease to a purchase. When computing the net advantage to leasing you should use the: A) Aftertax borrowing rate. B) Pretax risk-free rate. C) Aftertax risk-free rate. D) Aftertax interest rate implied by the lease payments. E) Pretax cost of borrowing. An operating lease has which one of the following characteristics? A) The economic life of the asset equals the lease term. B) The lessee has responsibility for the maintenance and insurance. C) The lessee can cancel the lease prior to the expiration date. D) The lease payments recover the full cost of the asset. E) The lease term is relatively long term. Which one of the following does not apply to the lessee of a sale and leaseback arrangement? A) Maintains ownership rights. B) Uses the asset. C) Receives cash from the sale of the asset. D) May have the option to purchase the asset at end of the lease term. E) Accepts a fully amortized lease