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:

Belonging

A sense of acceptance and support within a group or environment, often leading to feelings of security and community.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which suggests that people are motivated to fulfill basic needs before moving on to other, more advanced needs.

Motivation

The driving force behind individuals' actions, desires, and needs, influencing how they behave and what they strive to achieve.

Consumer Behavior

the study of how individuals or groups select, purchase, use, and dispose of goods and services, as well as the factors that influence these decisions and behaviors.