If a Lessee Classifies a Lease as a Capital Lease

question 4

Multiple Choice

If a lessee classifies a lease as a capital lease and uses the straight-line method of amortization, the amount to be amortized over the lease term is

• A)the original amount capitalized less the present value of the guaranteed residual value (if applicable)
• B)the original amount capitalized less the unguaranteed residual value
• C)the original amount capitalized less the guaranteed residual value (if applicable)
• D)fair value of the leased property

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Definitions:

Personality Traits

Enduring characteristics or qualities that define an individual’s behavior, attitude, and emotional patterns.

Individual's Concept

A person's unique, abstract understanding or idea of something.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, affecting how they think, feel, and behave.

External Locus

A belief that outcomes of events are determined by forces outside personal control.