Asked Jan 28, 2020

Howell Corporation, a publicly traded corporation, is the lessee in a leasing agreement with Brandon Inc. to
lease land and a building. If the lease contains a bargain purchase option, Howell should record the land and
the building as a(n)
a. Operating lease and capital lease, respectively.
b. Capital lease and operating lease, respectively.
c. Capital lease but recorded as a single unit.
d. Capital lease but separately classified.


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