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Lessor rents a building to Lessee for 5 years at an annual rental of RO 20,000. Lessor's cost of this building was RO 90,000 and

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Lessor rents a building to Lessee for 5 years at an annual rental of RO 20,000. Lessor's cost of this building was RO 90,000 and the building has a life of 6 years. The applicable interest rate is 10%. There are no uncertainties regarding costs and collections. Is this a capital lease or an operating lease? Why? Explain

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