test format to make changes Save ac . . 1. A company leases the following asset: Fair value of $200,000. Useful life of 5 years with no salvage value. Lease term is 4 years. Annual lease payment is $30,000 and the lease rate is 11%. The company's overall borrowing rate is 9.5%. The firm can purchase the equipment at the end of the lease period for $45,000. What type of lease is this? a. Operating b. Capital c. Financing d. Long term. . Innuen 2016 Plough Co nioned a long term lease for an office building The terms of the lease required