Alfredo Has a Non-Cancelable,five Year Lease on an Industrial-Grade Sewing

Alfredo has a non-cancelable,five year lease on an industrial-grade sewing machine for stitching upholstery.For accounting purposes,this is considered to be a capital lease.The life of the sewing machine is five years.Alfredo must pay all taxes and insurances related to this lease.Which type of lease does Alfredo have on this sewing machine?

A) open
B) straight
C) operating
D) financial
E) tax-oriented

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