Sales-Type Lease Hello Class, I will be advocating for the sales-type lease in this situation. I think that a sales-type lease would be be best because Medic-tech can recognize some sales profit in the beginning. I think this would be advantageous so that their financial statements will see more profits and cash flow with their new equipment. This will cause investors and shareholders to have increased faith in the company which will hopefully make up for the 25% loss. With an operating lease, the equipment would stay under right of use asset and not change the cash flows in the short term. This option would not be beneficial since we would be losing the 25% and not be gaining any traction with investors who are not aware of our breakthrough. The way we can treat the lease as a sales-type lease is if we transfer the rights of the equipment to the lessor. This then shows up on the balance sheet that will drum up business. The lessees can treat it as an operating lease by not recognizing ownership to the equipment on their balance sheet. The correct decision is to treat the lease as a sales type lease since both options come with a guaranteed loss of money. However, with the sales type lease you can gain more in the long run. How do I respond to this post