Which of the Following Criteria Would Require a Lessee to Classify

question 15

Multiple Choice

Which of the following criteria would require a lessee to classify a lease of land as a capital lease? 1. Transfer of ownersinp
2. Contains a bargain purchase option
3. Lease tem is $75 \%$ of economic life
4. Present value of lease payments is $90 \%$ of fair value

• A)any of the above criteria
• B)criterion 1 or 2
• C)criterion 1, 2, or 3
• D)criterion 1, 2, or 4

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Definitions:

Time Horizon

The fixed point in the future at which certain events will be evaluated or certain objectives are expected to be achieved.

Operation Phase

The period during which a system, project, or facility is actively functioning and conducting its intended tasks or services.

Cycle View

A perspective or approach that emphasizes considering processes or systems as recurring cycles to better understand and manage them.

Process Division

The segmentation of a business or production process into distinct tasks or activities for efficiency and specialization.