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The Golden Age Nursing Facility enters into a lease contract for badly needed fancy new kitchen equipment. After the contract is signed, the CFO at

The Golden Age Nursing Facility enters into a lease contract for badly needed fancy new kitchen equipment. After the contract is signed, the CFO at the home office of the nursing facility chain's ownership informs the Golden Age Administrator that the present value of the kitchen equipment lease payments amounts to 70% of the asset's value. Does this lease have to be capitalized?

A.

Yes

B.

Don't know

C.

No

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