Which of the Following Conditions Qualifies a Lease as a Finance

question 108

Multiple Choice

Which of the following conditions qualifies a lease as a finance lease?

• A)The present value of the minimum lease payments covers substantially all of the fair value of the property at the inception of the lease
• B)The lease term covers the majority of the asset's economic life
• C)The lease transfers the risks and benefits of ownership to the lessee
• D)The leased asset is specific to the needs of the lessee and without significant changes would not be of use to another company
• E)All of these

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