(Ch 18, 20 & 23) Question 14 of 38 < > View Policies Current Attempt in Progress -/2 Callaway Golf Co. leases telecommunications equipment from Cullumber Company. Assume the following data for equipment leased from Cullumber Company. The lease term is 5 years and requires equal rental payments of $26,040 at the beginning of each year. The equipment has a fair value at the commencement of the lease of $126,000, an estimated useful life of 8 years, and a guaranteed residual value at the end of the lease of $13,020. Cullumber set the annual rental to earn a rate of return of 6%, and this fact is known to Callaway. The lease does not transfer title or contain a bargain purchase option, and is not a specialized asset. How should Callaway classify this lease? eTextbook and Media Save for Later Attempts: 0 of 1 used Submit Answer