Question 5 Not yet In a sale-leaseback transaction, Reddy Company is the seller-lessee and Kaiser Company is the buyer-lessor. If none of the five criteria used to determine classification of the lease is met answered Points out of 2.00 P Flag question Select one: O a. The lease is labeled a "failed sale." O b. Reddy will record the sale of the asset, followed by a Note Receivable. O c. Reddy can record a gain on the sale, but not a loss. O d. Reddy will record the lease as an operating lease. O e.Kaiser will record the lease as a finance lease. Question 6 Not yet Jennifer Co. intends to lease a machine from Jan Corp. Jennifer's incremental borrowing rate is 14%. The prime rate of interest is 8%. Jan's implicit rate in the lease is 10%, which is known to Jennifer Jennifer computes the present value of the minimum lease payments using which rate? answered Points out of 2.00 P Flag question Select one: O a. 8% O b. 10% O c. 12% O d. 14%