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Lease Y does not contain a purchase option that the lessee is reasonably expected to exercise, but the lease term is equal to 80%
Lease Y does not contain a purchase option that the lessee is reasonably expected to exercise, but the lease term is equal to 80% of the estimated economic life of the leased property. Lease Z does not transfer ownership of the property to the lessee by the end of the lease term, but the present value of the lease payments is equal to 80% of the fair value of the leased property. How should the lessee classify these leases based only on the information provided above?
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