Use the following information for questions 5 through 8. Bohl Co. leased a car service...
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Use the following information for questions 5 through 8. Bohl Co. leased a car service station from a major oil company on January 2, 2007. Fair value of the service facility at the time was $400,000. The lease is a 10-year, noncancelable lease. Bohl uses straight-line depreciation for its other various business holdings. The economic life of the facility is 15 years with zero salvage value. Title to the facility will pass to Bohl at termination of the lease. A partial amortization schedule for this lease on Bohl's book is as follows: Payments Interest Reduction in Liability Lease Liability Jan. 2, 2007 $400,000.00 Dec. 31, 2007 $65,098.13 $40,000.00 $25,098.13 374,901.87 Dec. 31, 2008 65,098.13 37,490.19 27,607.94 347,293.93 5. From the viewpoint of the lessee, what type of lease is involved above? Finance lease None of the above O Operating lease O Sales-type lease
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