The Sirap Co. leased equipment from the Xylo co. with a fair market value of...
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The Sirap Co. leased equipment from the Xylo co. with a fair market value of $200,000. The lease contract has payments of $30,000 at the end of each year. The terms are 10 years at 10% interest rate. There is no bargain purchase agreement and the lessor will repossess the equipment. The equipment has a useful life of 15 years. Required: Use the 5 criteria and determine if the lease qualifies as a financing lease
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