When Would Lessor Classify the Lease as an Operating Lease

question 74

Multiple Choice

When would lessor classify the lease as an operating lease?

• A)Lessor retains risk of breakage to leased asset.
• B)Lessor has reward of high resale value.
• C)Lessor does not have risk of change in demand for the leased asset.
• D)Lessor does not have guaranteed residual value.

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Definitions:

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