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Question 6 On January 1, 2025, Forest Co. entered into a three-year lease agreement with Amber Co. to lease 10 new computers. The lease
Question 6 On January 1, 2025, Forest Co. entered into a three-year lease agreement with Amber Co. to lease 10 new computers. The lease term begins on January 1, 2025 and ads on December 31, 2027. The agreement requires Forest to pay Amber three annual lease payments of $8,000. The present value of the minias lease payosents is $20,000. Which of the following circumstances would require Fest classify and account for the arrangement as an operating lease? O Ownership of the computers transfers to Forest Co. after the lease ends O The fair value of the computers on January 1, 2025, is $30,000 O Forest Co. has the option of purchasing the computers at the end of the lease term O The economic lide of the computers is three years.
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