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Information has been gathered for three leases: Required None of the leased assets are specialized for the lessee. Classify each lease as an operating lease

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Information has been gathered for three leases: Required None of the leased assets are specialized for the lessee. Classify each lease as an operating lease or a finance lease Lease Fair value of equipment Title passes Bargain purchase option Useful life of equipment Lease term PV of minimum lease payments Residual, guaranteed, end of term lease Residual, unguaranteed, end of term lease Classification S196,000 S262,000 no no 8 years 7 years $262,000 $5,000 no $97,400 no 20 years 4 years $32,000 no unknown no no 8 years 6 years $166,600 no unknown

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