Multiple Choice
Which of the following is not among the criteria used by a lessee to classify a lease as a capital lease?
A) The present value of the minimum lease payments is greater than or equal to 75% of the fair market value of the asset.
B) The noncancellable lease term is greater than or equal to 75% of the estimated economic life of the asset.
C) The lease specifies that ownership of the asset transfers to the lessee.
D) The lease contains a bargain purchase option.
Correct Answer:
Verified
Correct Answer:
Verified
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