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Given the following data, determine the appropriate lease classification. No Bargain Purchase Option. Transfer of title at end of lease. Two-month renewal option exists; lessee

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Given the following data, determine the appropriate lease classification. No Bargain Purchase Option. Transfer of title at end of lease. Two-month renewal option exists; lessee reasonably certain to renew. Present value of lease payments 82% of Asset FMV. Lessor has foreseeable alternative use for asset. Select one: a. Short-term lease b. Finance lease c. Operating lease

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