Which of the Following Criteria Would Lead to a Lease's

question 75

Multiple Choice

Which of the following criteria would lead to a lease's being accounted for as a capital lease?

• A)The lease is for real property.
• B)The lease term is for four years, while the asset's useful life is ten years.
• C)The present value of the minimum lease payments is $92,000, while the fair market value of the leased asset is $100,000.
• D)The lease asset is guaranteed to revert to the lessor at the end of the lease term.

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Definitions:

Openness

A personality trait signifying receptiveness to new experiences, ideas, and unconventional values.

Trait

A dimension of personality used to categorize people according to the degree to which they manifest a particular characteristic.

New Ideas

Original thoughts, concepts, or innovations that have not been previously known or realized.

Cross-Situational Consistency

The concept that an individual's behavior tends to be consistent across different situations.