The Following Are the Characteristics of a Lease Requirement:
Determine the Present Value of Minimum Lease Payments (MLP)and

The following are the characteristics of a lease:
$$\begin{array} { | l | l | } \hline \text { Fair value of leased asset } & 104,000 \\\hline \text { Lease payments } & 15,500 \\\hline \text { Lease term } & 10 \\\hline \text { Payment frequency } & \text { Annual } \\\hline \text { Payment timing } & \text { End of year } \\\hline \text { Guaranteed residual value } & \text { None } \\\hline \text { Interest rate implicit in lease } & 8 \% \\\hline\end{array}$$ Requirement:
Determine the present value of minimum lease payments (MLP)and the appropriate classification of this lease for the lessee.