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Harrington Corporation recently leased a number of trucks from Andre Corporation. In inspecting the books of Harrington Corporation, you notice that the trucks have not been recorded as assets on Harrington's balance sheet. Based on this information, what type of acquisition are the trucks for Harrington?

User Mustafa J
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Final answer:

The trucks leased by Harrington Corporation from Andre Corporation are operating lease assets.

Step-by-step explanation:

The situation described in the question is that Harrington Corporation has leased trucks from Andre Corporation, but the trucks have not been recorded as assets on Harrington's balance sheet. In this case, the trucks are considered operating lease assets for Harrington.

An operating lease is a type of lease agreement where the lessee (Harrington Corporation) does not record the leased assets on their balance sheet. Instead, the leased assets are treated as an expense, and the lessee benefits from using the assets for a specific period.

By not recording the trucks as assets, Harrington Corporation is not taking ownership of the trucks. This type of arrangement is common for operating leases, especially when the lessee wants to avoid recognizing additional liabilities or assets on their financial statements.

User AbdelHady
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