The deluxe corporation has just signed a 168-month lease on an asset with a 19-year life. The minimum lease payments are $ 1,300 per month (15,600 per year) and are to be discounted back to the present at a 9 percent annual discount rate. The estimated fair calue of the property is $165,000.

A.) Calculate the lease period as a percentage to the estimated life of the leased property. (SHOW ALL WORK)

B.) Calculate the present value of lease payments as a percentage to the fair value of the property. (SHOW ALL WORK)

C.) Should the lease be recoreded as a capital lease or an operating lease?