D both capital and operating leases represent economic

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Unformatted text preview: of the lease, the amount recorded as a liability should be the fair value. For Lease K, Borman records as a liability at the inception of the lease an amount determined in the same manner as for Lease J, and the payment called for in the bargain purchase option should be included in the minimum lease payments. For Lease L, Borman does not record a liability at t...
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