Multiple Choice
Which of the following is NOT a requirement of a capital lease?
A) There is no transfer of ownership at the end of the lease.
B) The agreement has a bargain purchase option.
C) The lease must cover at least 75% of asset's useful life.
D) The present value of lease payments must be 90% or more of market value of asset.
E) The present value of lease payments equals substantially all of the fair value of the leased property at the inception of the lease.
Correct Answer:
Verified
Correct Answer:
Verified
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