Callaway Golf Co$.$ leases telecommunications equipment from Oriole Company. Assume the following data for equith Oriole Company. The lease term is $5$ years and requires equal rental payments of $$34,100$ at the beginning of exhyy or contain a bargain purchase option, and is not a speclallized asset.

How should Callaway classify this lease?

Finance lease

Operaing lease

Attempts: $00$

Callaway Golf Co$.$ leases telecommunications equipment from Oriole Company. Assume the following data for equibment wnedtrom Oriole Company. The lease term is $5$ years and requires equal rental payments of $$34,100$ at the beginning of exch yow. The residual value at the end of the lease of $$17,050.$ Oriole set the annual rental to earn a rate of return ol SK$,$ and whin focthknownto Callaway. The lease does not transfer title or contain a bargain purchase option, and is not a speclallzed awset.

How should Callaway classify this lease?

Finance lease

Operaing lease

Sales$-$type lease

Attempts: $0$ of $1$ used