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Please read the question and provide a detailed answer. Question 6 3 pts Use the following information for questions through 8. Bohl Coleased a car
Please read the question and provide a detailed answer.
Question 6 3 pts Use the following information for questions through 8. Bohl Coleased a car service station from a major oil company on January 2, 2007 Fair value of the service facility at the time was $1,100,000. The lease is a 10-year, noncancelable lease. Bohl uses straight-line depreciation for its other various business holdings. The economic life of the facility is 15 years with zero salvage value. Title to the facility will pass to Boht at termination of the lease. A partial amortization schedule for this lease on Bohl's book is as follows: Payments Interest Reduction in Liability Lease Liability Jan. 2. 2007 $928,000 Dec 31, 2007 $151028 $92,800 $58.228 869.772 Dec 31, 2008 151.028 86,977 64.051 805.721 5. From the viewpoint of the lessee what type of lease is involved above! None of the above Operating lase Sales type lease Finance lease
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