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One of the Four Criteria for a Capital Lease Specifies

Question 57

Multiple Choice

One of the four criteria for a capital lease specifies that the present value of the minimum lease payments be equal to or greater than:

A) 90% of the cost of the asset.
B) 75% of the fair value of the asset.
C) 90% of the fair value of the asset.
D) 75% of the cost of the asset.

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