Which of the Following Lease Criteria Would Not Qualify a Lease

question 3

Multiple Choice

Which of the following lease criteria would not qualify a lease as a capital lease?

• A) The lease transfers ownership of the property to the lessee by the end of the lease term.
• B) The lease contains an option to purchase the leased property at its fair market value.
• C) The lease term is equal to or greater than 75% of the estimated economic life of the leased property.
• D) The present value of the minimum lease payments equals or exceeds 90% of the fair value of the leased property.

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Definitions:

Disorientation

A state of confusion regarding time, place, or personal identity.

Confusion

A mental state characterized by disorientation and difficulty in understanding or making sense of the environment and information.

Self-Esteem

The subjective evaluation or appraisal of one's own worth, value, or significance.

Negative Thoughts

Involves patterns of thinking that are pessimistic, self-critical, or defeatist, and can affect one's mood and mental health.