The Amount to Be Recorded as the Cost of an Asset

question 92

Multiple Choice

The amount to be recorded as the cost of an asset under capital lease is equal to the

• A) present value of the minimum lease payments.
• B) present value of the minimum lease payments or the fair value of the asset, whichever is lower.
• C) present value of the minimum lease payments plus the present value of any unguaranteed residual value.
• D) carrying value of the asset on the lessor's books.

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Definitions:

Values

The core beliefs or principles that guide an individual's or organization's behavior, decisions, and actions.

Fashion

A popular trend, especially in styles of dress and ornament or manners of behavior.

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Music is an art form and cultural activity involving the creation of sounds and rhythms in various styles and formats, used for entertainment, expression, and ceremonial purposes.

Novelty

The quality of being new, unique, or interesting.