Question
Chad Ltd negotiated a lease on the following terms: the term of the lease was 5 years; the estimated useful life of the leased equipment
Chad Ltd negotiated a lease on the following terms: the term of the lease was 5 years; the estimated useful life of the leased equipment was 10 years; the purchase price was 60,000; and the annual lease payment was 5,000. the lease should be classified as -------
1.Operating lease
2.Finance lease
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
3rd Canadian edition
978-1118727737, 1118727738, 978-1118033890
