Lease Y Does Not Contain a Bargain Purchase Option, but the Lease

question 12

Multiple Choice

Lease Y does not contain a bargain purchase option, but the lease term is equal to 90 percent of the estimated economic life of the leased property. Lease Z does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to 75 percent of the estimated economic life of the leased property. How should the lessee classify these leases?
Lease Y Lease Z

• A) Capital lease Operating lease
• B) Capital lease Capital lease
• C) Operating lease Capital lease
• D) Operating lease Operating lease

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Definitions:

Social Movements

Organized collective efforts by people to promote or resist change in society, often aiming at political or social reform.

Mass Media

Communication technologies that reach a large audience simultaneously, including newspapers, television, radio, and the internet, often shaping public opinion and information dissemination.

Charismatic Leaders

Individuals who inspire followers with devotion and enthusiasm through their charm, persuasive ability, and personal appeal.

Political Revolution

A fundamental and sudden change in political power or organizational structures that takes place when the population revolts against current authorities.