Which of the following is an irs guideline given to qualifying a transaction as a lease for tax purposes?
a. the asset is not expected to be useable to the lessor except for the purposes of continued leases or transfer to the lessee.
b. the lessor must have at least 90% "at-risk" investment in the asset that is being leased.
c. the lessee must have the option to buy the asset at the end of the lease far below market value.
d. none of the above

Speedy auto repairs uses a job-order costing system. the company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly wages. speedy’s overhead costs include various items, such as the shop manager’s salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. the company applies all of its overhead costs to jobs based on direct labor-hours. at the beginning of the year, it made the following estimates: direct labor-hours required to support estimated output 20,000 fixed overhead cost $ 350,000 variable overhead cost per direct labor-hour $ 1.00 required: 1. compute the predetermined overhead rate. 2. during the year, mr. wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. the following information was available with respect to his job: direct materials $ 590 direct labor cost $ 109 direct labor-hours used 6