Which of the Following Is True If a Lease Includes

question 66

Multiple Choice

Which of the following is true if a lease includes both a bargain purchase option and a residual value?

• A) The bargain purchase option takes precedence in all computations.
• B) The lessee will depreciate the property over the life of the lease without considering the bargain purchase option.
• C) The lessee adds the present value of the residual value to the amount recorded for the lease.
• D) The lessee subtracts the present value of the bargain purchase option from the present value of the minimum lease payments.

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Definitions:

Operant Conditioning

A learning process where the likelihood of a behavior's occurrence is increased or decreased through reinforcement or punishment.

Stimuli

External agents or occurrences that provoke a reaction, whether physical or psychological, in an organism.

Dysfunctional Assumptions

Negative and unhelpful beliefs that are often automatic and can influence one's behavior and emotional state.

Irrational Thoughts

Thoughts that are not based on reason or logic, often stemming from misconceptions, fears, or misunderstandings.