Which of the foregoing leases shall be classified as operating lease?a. I, II, III and IVb. I, II and IV


5 . 6Exam-Set A- Leases-Problem [Compatibility Mode] – Word (Product Activation Failed)?FILEHOMEINSERTDESIGNPAGE LAYOUTREFERENCESMAILINGSREVIEWVIEW16 CutBe CopyTimes New Ro * 12 – A A AaTTAaBbCcDc AaBbCcD< AaBbC AaBbcc] AabFind *AaBbCCC AaBbCCD: AaBbCCDPasteFormat Painter1 No Spac… Heading 1 Heading 2Title41 4dac ReplaceB I U – abe X x’ A – Z – A .1 NormalSubtitleSubtle Em…EmphasisSelect -ClipboardFontParagraphStylesEditing11 . 1 . 1 . 2 . 1 . 33 . 14 .5689. 11 . 112 . 1 . 13 . 1 . 14 . 1 . 15 . 1 . 16 . 1 . 17 . 1 . 18 .. 20 .LEASES1. Listed below are four lease situations:HIIIIIIVAsset’s fair value(in million pesos)P12P12P10P8Asset’s useful life (years)10101010Bargain purchase optionNoneNoneNoneNoneLease term (in years)6564Present value of minimum lease paymentsP11P&MP5MWhich of the foregoing leases shall be classified as operating lease?PAGE 1 OF 41924 WORDS[X ENGLISH (UNITED STATES)+156%HType here to searchP 3NEMENG6:31 AML 15/07/2020

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