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  3. 1. on january 1, 2021, sans serif publishers lease

1. On January 1, 2021, Sans Serif Publishers leased printing equipment from First Lease Corp....

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Accounting

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1. On January 1, 2021, Sans Serif Publishers leased printing equipment from First Lease Corp. First Lease Corp purchased the equipment from CompuDec Corporation at a cost of $479,079. The lease agreement specifies six annual payments of $90,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 from 2021 through 2025. The six-year lease term ending December 31, 2026, is two years less than the expected useful life . There is no obligation for the lessor to buy the asset at the end of the lease period but they may buy it at the value identified by a registered valuer at that time. The interest rate in these financing arrangements is 10%. Determine if this is a finance or operating lease. Explain your answer, including calculations

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