Which of the Following Is One of the Lease Capitalization

question 4

Multiple Choice

Which of the following is one of the lease capitalization criteria under ASC 842?

• A) The minimum lease payments (excluding executory costs) equal or exceed 90% of the fair value of the leased property
• B) The lease transfers ownership of the property to the lessor
• C) The lease contains a purchase option
• D) The lease term is a major part of the asset's economic life, not near the end of the asset's life

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