Which of the Following Criteria Would Indicate That a Lease

question 125

Multiple Choice

Which of the following criteria would indicate that a lease should be accounted for as a finance lease?

• A) The present value of the minimum lease payments is $93,500, while the fair market value of the leased asset is $100,000.
• B) The lease is for real property.
• C) The lease asset is guaranteed to revert to the lessor at the end of the lease term.
• D) The lease term is for four years, while the asset's useful life is ten years.

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Disability

A physical or mental condition that limits a person's movements, senses, or activities, affecting their daily life and possibly requiring special accommodations.

Normality

The condition or state of conforming to a standard, norm, or expectation that is typical within a society or group.

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The practice of rehabilitating an individual to their normal state of health or life by means of therapy and training following imprisonment, addiction, or disease.

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A social and legal initiative aimed at reforming offenders through therapy, education, and support in order to reduce recidivism and integrate them back into society.