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Which of the following is a criterion for classifying a lease as a capital lease by a lessee? A. The present value of the minimum
| Which of the following is a criterion for classifying a lease as a capital lease by a lessee? | |
| A. | The present value of the minimum lease payments is 75% or more of the fair value of the leased property. |
| B. | The lease term is equal to 75% or more of the estimated economic life of the leased property. |
| C. | The lease agreement contains an option to purchase the leased property at its fair value at the end of the lease term. |
| D. | The lease agreement requires that title of the leased property remains with the lessor at the end of the lease term. |
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Internal Auditing An Integrated Approach
Authors: Richard Cascarino
1st Edition
0702166693, 978-0702166693
