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Minnetonka Company leases an asset. Information regarding the lease: Fair value of the asset: $400,000. . . . Useful life of the asset: 6 years

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Minnetonka Company leases an asset. Information regarding the lease: Fair value of the asset: $400,000. . . . Useful life of the asset: 6 years with no salvage value. Lease term is 5 years. Annual lease payments are $60,000 Ownership does not transfer at the end of the lease term. The lease grants an option to purchase the asset at the end of the lease term for 50% of the fair market value of the asset. What type of lease is this? . a) Operating Ob) Finance A MacBook Air 20 F3 DO F4 FS F6

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