Question 13 5 Editing 1. (5 points) Which of the following best describes current practice in accounting for leases? (10 18 & 20) All long-term leases are capitalized Only finance leases are capitalized No leases are capitalized All leases are capitalized 5 points Question 14 1. (5 points) Which of the following correctly states one of the classification tests for determining if a les classify a lease as financing or operating? (1018) should The lease payments are for the majority of the fair or market value of the asset The lease term is equal to or greater than 75% of the economic life of the asset The ownership of the lease transfers to the lessor at the end of the lease The lease contains a purchase option 5 points Question 15 1. (5 points) Which of the following would be capitalized as the cost of a Right of Use Asset by a lessee if the lease is classified as a finance lease? (10 20 & 21) "present Value of the lease payments or the fair value of the set whichever is smaller present value of both the lease payments plus and an unguaranteed residual value present value of the lease payments lessor's carrying value of the asset