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Wilco Inc. enters into a 6-year lease for a new piece of machinery from Seminole Corporation. Wilco has the option of purchasing the machinery at

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Wilco Inc. enters into a 6-year lease for a new piece of machinery from Seminole Corporation. Wilco has the option of purchasing the machinery at anytime during the lease at fair value. The machine has a 10 -year life, and Wilco will return the machinery to the Seminole at the end of the lease. Given this information, Wilco should account for the lease as an operating lease. True False

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