Which of the Following Is Not a Condition Which Would

question 15

Multiple Choice

Which of the following is not a condition which would require the recording of a lease contract as a finance lease?

• A) The lease transfers ownership of the property to the lessee.
• B) The lease contains a bargain purchase option.
• C) The lease term is less than 75% of the economic life of the leased property.
• D) The present value of the lease payments equals or exceeds 90% of the fair value of the leased property.

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Definitions:

Ambiguous Effect

An ambiguous effect refers to an outcome or result that is unclear or can have multiple interpretations, often leading to uncertain impacts in economic analyses.

Substitute

An alternative product or service that can replace another in satisfying consumer needs or wants.

Complement

A good or service that is used together with another good or service, often enhancing the value or utility of the primary good.

Income

The monetary payment received for providing labor, producing goods, or investing capital, often measured over a specific time period.