Each of the four independent situations below describes a lease requiring annual lease payments of $10,000. For each situation, determine the appropriate lease classification by the lessee and indicate why. Situation
1 2 3 4
Lease term (years) 4 4 4 4
Asset's useful life (years) 6 5 6 6
Asset's fair value $44,000 $43,000 $41,000 $39,000
Bargain purchase option? No Yes No No
Annual lease payments Beg. of yr End of yr Beg. of yr End of yr
Lessor's implicit rate (known by lessee) 5% 6% 5% 6%
Lessee's incremental borrowing rate 5% 5% 5% 5%

hyhggefmvz

bbmzbmzgzmkgsgzkhxldluox

answer; ///i believe the correct answer is(e) complementary to each other;

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return