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On January 1, 2015, Thun Manufacturing leased a piece of machinery for use in its North American operations from Klerk Bank. i (Click the icon to view the terms of the lease.) (Click the icon to view. the Future Value of $1 table.) (Click the icon to view the Present Value of S1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) Click the icon to view the Present Value of an Ordinary Annuity table.) (Click the icon to view the Present Value of an Annuity Due table.) Determine whether Thun should report the lease as an operating or capital lease. Begin by identifying any of the capital lease criteria that Thun meets. (Select any and all that apply.) The lease transfers ownership of the property to the lessee at the end of the lease term. The lease contains a bargain purchase option. The lease term is greater than or equal to 75% of the estimated economic life of the property. The present value of the minimum lease payments is greater than or equal to 90% of the fair market value of the 1. 2. | 3. 4. at the ince of the lease This is ain) | lease for the lessee(Thun) because | of the capital criteria is(are) met. More Info The six-year, non-cancellable lease requires lease payments of $16,000 due at the beginning of each year. The machinery, buil to Thun's specifications, would require significant modifications to be used by another manufacturer. The present value of the lease payments is $70,061. The lease agreement does not transfer ownership of the machinery, and it does not contain a bargain purchase option. The machinery has a fair value of $92.455 and an estimated life of 7 years. Print Done Click to select your answerfs)

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