Multiple Choice
Which of the following is NOT a criteria to determine a capital lease under ASPE?
A) There is a bargain purchase option included in the lease.
B) The implicit interest rate in the lease is greater than the incremental borrowing rate.
C) The lease term is 75% or more of the leased property's economic life.
D) The present value of the minimum lease payments is equal to 90% or more of the fair value of the leased asset.
Correct Answer:
Verified
Correct Answer:
Verified
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