Multiple Choice
For which of the following conditions will the lessor classify a lease as a sales-type lease?
A) The present value of the sum of the lease payments is equal to or more than the fair value of the underlying asset.
B) The lease term is less than one year.
C) The leased asset may be exchanged for a similar asset during the lease term.
D) The collectability of the minimum lease payments is reasonably assured.
Correct Answer:
Verified
Correct Answer:
Verified
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