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  3. 2. jameson company leases an asset. information re

2. Jameson Company leases an asset. Information regarding the lease: -fair value of the...

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Accounting

2. Jameson Company leases an asset. Information regarding the lease:

-fair value of the asset: 400,000

-useful life of the asset: 6 years with no salvage value

-lease term is 5 years

-annual lease payments are $60,000

-implicit interest rate: 10%

-Jameson can purchase the asset at the end of the lease period for $50,000

What type of lease is this?

1. Operating

2. Finance

3. Short Term

4. Long Term

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