Which of the Following Facts Would Require a Lessee to Classify

question 14

Multiple Choice

Which of the following facts would require a lessee to classify a lease as a capital lease?

• A)The lease term is 85% of the estimated economic life of the leased property.
• B)The present value of the minimum lease payments is 85% of the fair market value of the leased property to the lessor, less any investment tax credit accruing to the lessor.
• C)The lease contains a purchase option.
• D)The lease does not transfer ownership of the leased property.

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Definitions:

Artistic Relics

Historical objects or pieces of art which hold cultural, religious, or sentimental value, often preserved due to their significance.

Emotional Expressions

The way emotions are outwardly displayed and communicated to others through facial expressions, voice pitch, body language, and other behaviors.

Darwin

Charles Darwin, a 19th-century naturalist, geologist, and biologist known for his theory of evolution through natural selection.

Embodied Behavior

Theory that the movements we make and the movements we perceive in others are central to communication with others.