Under USGAAP,which of the Following Items Would Require a Lessee to to Classify

question 22

Multiple Choice

Under U.S.GAAP,which of the following items would require a lessee to classify a lease of equipment as a capital lease?

• A) There is no transfer of ownership to the lessee at the end of the lease term.
• B) The lease does not contain a bargain purchase option.
• C) The lease term is 90% of the estimated economic life of the lease property.
• D) The present value of the contractual minimum lease payments is 75% of the fair value of the leased property.

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Definitions:

Subsidies

Financial support provided by the government to individuals, businesses, or institutions to encourage production or consumption of certain goods or services.

Healthcare Consumers

Individuals who use, are affected by, or are potential users of health care services.

Third-Party Payments

Transactions where a person or entity makes a payment on behalf of another, often seen in healthcare insurance.

Third Party

An entity that is not directly involved in a transaction but may be affected by it or has a peripheral interest.