If the Present Value of the Minimum Lease Payments Is

question 113

Multiple Choice

If the present value of the minimum lease payments is be greater than or equal to ________, the lessee will record the lease as a capital lease.

• A) 75% of the cost of the asset
• B) 75% of the fair market value of the asset
• C) 90% of the cost of the asset
• D) 90% of the fair market value of the asset

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