Use the Following Information to Answer Questions
Jacquin Co -The Lease Should Be Classified by Jacquin Co

Multiple Choice

Use the following information to answer questions
Jacquin Co.leased an asset under the following terms: $\begin{array}{ll}\text { Annual lease payments } & \$ 7,500 \\\text { Asset's estimated useful life } & 8 \text { years } \\\text { Bargain purchase option } & \text { none } \\\text { Asset's fair market value } & \$ 65,000 \\\text { Transfer of title at end of lease } & \text { none } \\\text { Lease term } & 4 \text { years } \\\text { Present value of lease payments } & \$ 35,500\end{array}$
-The lease should be classified by Jacquin Co.as an) :

A) operating lease.
B) commercial lease.
C) leveraged lease.
D) finance lease.