Lease a Does Not Contain a Bargain Purchase Option, but the Lease

question 65

Short Answer

Lease A does not contain a bargain purchase option, but the lease term is equal to 90% of the estimated economic life of the leased property.Lease B does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to 85% of the estimated economic life of the leased property.Using ASPE criteria, how should the lessee classify these leases?

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Definitions:

Training Transfer

Training Transfer is the successful application of skills, knowledge, or attitudes learned in a training setting to the job environment, enhancing job performance.

Internal Referencing Strategy

A method wherein individuals compare their current situation, achievements, or outcomes against their previous performances instead of comparing themselves to others.

Post-only Design

An experimental design where measurements are taken only after the intervention, lacking a baseline measurement for comparison.

Time Series Design

A research design that involves observations of a particular variable or variables over a set period, allowing for the analysis of trends or changes over time.