Multiple Choice
If the present value of future lease payments equals or exceeds 90% of the fair value of the leased property, the
A) conditions are met for the lease to be considered a finance lease.
B) lease is uneconomical and should not be entered into.
C) lease may be classified as an operating lease.
D) recording of a lease liability is optional-that is, the off-balance sheet approach can be elected.
Correct Answer:
Verified
Correct Answer:
Verified
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