The Lessee Must Record a Lease as an Asset If

question 50

Multiple Choice

The lessee must record a lease as an asset if the lease

• A) transfers ownership of the property to the lessor.
• B) contains a purchase option.
• C) term is 75% or more of the useful life of the leased property.
• D) payments equal or exceed 90% of the fair market value of the leased property.

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Definitions:

Chinese POWs

Prisoners of war from China, notably during conflicts such as the Korean War, where Chinese soldiers were captured by opposing forces.

Korean War

A conflict between North Korea (with the support of China and the Soviet Union) and South Korea (supported by the United Nations, primarily the United States) from 1950 to 1953, part of the early Cold War period.

Presidency Powers

The duties, responsibilities, and powers granted to the President of the United States by the Constitution, including serving as the head of state and government, commander-in-chief of the armed forces, and the power to sign or veto legislation.

Congress Powers

The authorities granted to the legislative body of the United States, including creating laws, declaring war, and regulating commerce.