Multiple Choice
Which of the following meets the criteria for a capitalized lease under GAAP in the U.S.?
A) The present value of the future minimum payments is $90,000 and the fair value is $110,000.
B) The lessee can purchase the asset for an amount that is greater than fair vale at the end of the lease.
C) The lease term is ten years and the useful life of the asset is 11 years.
D) Title does not transfer by the end of the lease term.
Correct Answer:
Verified
Correct Answer:
Verified
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