Lease Capitalization's Value Determination Requires One of the Following Methods

question 6

Multiple Choice

Lease capitalization's value determination requires one of the following methods.

• A)finding the net present value of future lease payments.
• B)recording the asset's purchase price as the lessee's asset.
• C)the lessor shows the asset's effect on his leverage.
• D)altering the lessee's restrictive covenants by the amount of the asset's value.

---

Definitions:

Kidney Stones

Hard deposits formed in the kidneys from minerals and salts, which can cause pain and block urine flow.

Abscess of the Bladder

An infection characterized by a collection of pus within the bladder wall.

Nephrolithiasis

The condition of having kidney stones, which are hard, crystalline mineral materials formed within the kidney or urinary tract.

Enlarged Prostate

A condition commonly occurring in men as they age, involving the growth of the prostate gland, which can impede the flow of urine.