easy · Financial Accounting assets

Which of the following would cause a lease of a specialized machine to be classified as a finance lease, even if the term is only 20% of its useful life?

  1. The machine has no alternative use to the lessor at the end of the term.
  2. The asset is located in a foreign country.
  3. The lease payments are made monthly instead of annually.
  4. The lessee is a publicly traded corporation.

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