Chan Is a Financial Services Firm

question 67

Multiple Choice

Chan is a financial services firm.They need computer equipment and have decided to lease the equipment with an operating lease.They want to prevent additional debt from showing up on their balance sheet.Which of the following must be true about their lease for this to work?

• A)the lease term is equal to 65% or more of the economic life of the leased property.
• B)the present value of the minimum lease payments is equal to 75% or more of the fair value of the leased property at the inception of the lease.
• C)the present value of the minimum lease payments is equal to 90% or more of the fair value of the leased property at the inception of the lease.
• D)the lease term is equal to 90% or more of the economic life of the leased property.

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Definitions:

Therapeutic Environment

A setting designed to promote healing and wellness, often characterized by safety, support, and respect for the individual’s needs and dignity.

Somatization

refers to the process of manifesting psychological distress through physical symptoms without a medical cause.

Emotional Expression

The process of conveying one's feelings or emotions through words, facial expressions, body language, or other forms of communication.

Assimilation

The process through which individuals or groups from different cultures come to adopt the dominant society's culture, often leading to the loss of their original cultural identity.