Question
Which of the following is a correct statement of one of the classification tests? The lease payments (excluding executory costs) equal or exceed 90% of
Which of the following is a correct statement of one of the classification tests?
The lease payments (excluding executory costs) equal or exceed 90% of the fair value of the leased property.
The lease term is equal to or more than 75% of the estimated economic life of the leased property.
The lease transfers ownership of the property to the lessor.
The lease contains a purchase option.
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College Accounting Chapters 1- 9
Authors: James A Heintz, Robert W Parry
23rd Edition
1337794783, 978-1337794787
