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Lease A does not contain a bargain purchase option, but the present value of minimum lease payments is equal to 90 percent of the asset's
Lease A does not contain a bargain purchase option, but the present value of minimum lease payments is equal to 90 percent of the asset's fair value. Lease B does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to 75 percent of the estimated economic life of the leased property. How should the lessee classify these leases? Lease A Lease B OA. Operating lease B. Operating lease C.Capital lease Capital lease Operating lease Capital lease Operating lease OD. Capital lease
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