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Which one of the following will classify a lease as a capital lease for accounting purposes? The lease transfers ownership of the asset to the
Which one of the following will classify a lease as a capital lease for accounting purposes? |
The lease transfers ownership of the asset to the lessee by the end of the lease term. |
The lease term is 75 percent or less of the estimated economic life of the asset. |
The lessee can buy the asset at fair market value at the end of the lease. |
The initial present value of the lease payments equals or exceeds 80 percent of the fair market value of the asset. |
The total of the lease payments exceeds $100,000. |
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