what is the code for the rule

what

is the accounting code for the rule

Issue: The issue is to determine the basis for allocation of rent between the office and shop spaces and to classify the lease as an operating or finance lease. Additionally, the useful life, fair market value, and length of the lease for the building, as well as the terms of the rental agreement for the trucks, need to be determined. Rule: The allocation of rent between spaces is typically based on the square footage used by each space. A lease is classified as an operating lease if it does not transfer ownership of the asset to the lessee at the end of the lease term and if the lease term is less than or equal to 75% of the asset's useful life. Otherwise, the lease is classified as a finance lease. The useful life and fair market value of the building are used to determine the appropriate accounting treatment, such as depreciation or impairment, for the leased asset. The length of the lease and the rental terms for the trucks are also important factors in determining the appropriate accounting treatment. Rule: The allocation of rent between spaces is typically based on the square footage used by each space. A lease is classified as an operating lease if it does not transfer ownership of the asset to the lessee at the end of the lease term and if the lease term is less than or equal to 75% of the asset's useful life. Otherwise, the lease is classified as a finance lease. The useful life and fair market value of the building are used to determine the appropriate accounting treatment, such as depreciation or impairment, for the leased asset. The length of the lease and the rental terms for the trucks are also important factors in determining the appropriate accounting treatment