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What is the proper classification of Owl lease

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Reference no: EM132783236

Question - Fox Co. signed a? 7-year lease at the beginning of 2020, leasing equipment owned by Owl Co. with an economic life of 9 years and a fair value of? $420,000. There is no purchase option and Fox must return the non-specialized equipment at the end of the lease. The present value of Fox's lease payments is $310,000. What is the proper classification of Owl's lease?

Reference no: EM132783236

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