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a. Explain the justification for requiring lessees to capitalize certain long-term leases. Do not limit your discussion to the specific criteria for classifying a lease

a. Explain the justification for requiring lessees to capitalize certain long-term leases. Do not limit your discussion to the specific criteria for classifying a lease as a capital lease.

b. Describe how a lessee accounts for a capital lease at inception

c. Explain how a lessee records each minimum lease payment for a capital lease

d. Explain how Von should classify each of the two leases. Provide justification.

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