Which of the following lease provisions would cause a lease to be classified as an operating lease? Select one: A. The collectability of lease payments by the lessor is unpredictable B. The lease contains a bargain purchase option C. The term of the lease is more than 75 percent of the estimated economic life of the leased property
Which of the following lease provisions would cause a lease to be classified as an operating lease? Select one: A. The collectability of lease payments by the lessor is unpredictable B. The lease contains a bargain purchase option C. The term of the lease is more than 75 percent of the estimated economic life of the leased property
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 8MC: At its inception, the lease term of Lease G is 65% of the estimated remaining economic life of the...
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Which of the following lease provisions would cause a lease to be classified as an operating lease?
Select one:
A. The collectability of lease payments by the lessor is unpredictable
B. The lease contains a bargain purchase option
C. The term of the lease is more than 75 percent of the estimated economic life of the leased property
D. The present value of the minimum lease payments equals or exceeds 90 percent of the fair value of the leased property
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