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For which of the following conditions will the lessor classify a capital lease as a sales-type capital lease? The fair value of the lease property
For which of the following conditions will the lessor classify a capital lease as a sales-type capital lease?
The fair value of the lease property is greater than its cost.
The present value of the minimum lease payments is equal to 90% or more of the fair value.
The collectability of the minimum lease payments is reasonably assured.
The lease term is equal to 75% or more of the estimated economic life of the leased property.
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