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

question 120

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:

RAM

Random Access Memory, a type of computer memory that is used to store data temporarily while the computer is running.

Recycle Bin

A folder on a computer where deleted files are temporarily stored, allowing for recovery before permanent deletion.

Trash Folder

A dedicated space in a digital environment where deleted files are temporarily stored before permanent deletion.

Operating System

The basic software that handles the administration of computer hardware and software resources while supplying general services for computer software.