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Yueve?s Company is negotiating three leases for store locations

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Question;Yueve?s Company is negotiating three leases for store locations Yueve?s incremental borrowing rate is 12 percent and the lessor?s implicit rate is unknown (it is impracticable to determine)Each store will have an economic useful life of 30 years. lease payments will be made at the end of each year. Based on the data below properly classify each of the leases as an operating lease or a finance lease. The purchase price for each property is listed as an alternative to leasing.

 

Paper#43632 | Written in 18-Jul-2015

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