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Business, 05.03.2021 01:00 erick7123

For each of the following four separate finance leases scenarios, determine the lease payment that the lessee should use to determine the appropriate lease classification. a. Lease payments are $6,600 per month plus 5% of lessee net sales. Lessee sales for year one are estimated to be $220,000. b. Lease payments are computed as the greater of (a) 5% of lessee net sales or (b) $3,600. Lessee sales for year one are estimated to be $220,000. c. Annual lease payments are 10% of lessee annual sales, with no fixed portion. Lessee sales for year one are estimated to be $220,000.

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