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On March 1 of the Current Year,Hill Corporation Leased Sound

Question 325

True/False

On March 1 of the current year,Hill Corporation leased sound equipment from McEntire Company.The equipment has a life of 8 years.There is no bargain purchase option or passage of title.For the lease to be considered a capital lease,it must have a term of at least ________.
A)5 years
B)6 years
C)7 years
D)8 years

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