1- Which of the following is not a condition that will require capitalization of a lease?

A-The title transfers at the end of the lease B-There is a bargain purchase option C-The present value of the minimum lease payments is greater than or equal to 90 percent of the fair market value of the asset D-All of the above are conditions that would require capitalization of the lease

2-The journal entry in the buyers books to record the honoring by the seller of an account deemed uncollectible in a factoring agreement with recourse would include a A-debit to Bad Debt Expense B-debit to Allowance for Uncollectible Accounts C-debit to Cash D-debit to Loss on Factoring Agreement

3-Leased assets should be depreciated over A-their useful lives B-the term of the lease C-the term of the lease or their useful lives, whichever is shorter D-the term of the lease or their useful lives, whichever is longer

4-The amount of interest to capitalize during the construction of a qualified asset is the A-lower of specific interest or avoidable interest B-lower of avoidable or actual interest C-lower of specific or actual interest D-higher of specific or avoidable interest