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Tarkan Inc. leases an asset with the following information: Fair value of the asset: $400,000. . Useful life of the asset: 6 years with no
Tarkan Inc. leases an asset with the following information: Fair value of the asset: $400,000. . Useful life of the asset: 6 years with no economic salvage value. Lease term is 5 years. Annual lease payments (starting from beginning of year) are $60,000. Implicit interest rate: 6%. Tarkan can purchase the asset at the end of the lease period for $100,000. What type of lease is this? Operating a. Finance b. Short term c. d. Long term Sale-Leaseback e
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