A Noncancellable Lease Contains a Bargain Purchase Option

question 385

True/False

A noncancellable lease contains a bargain purchase option.The fair value of the asset is greater than the lessor's cost.Collectability of the lease payments is reasonably assured,and no material uncertainties about future costs exist.How will the lessor account for the lease?
A)direct financing lease
B)operating lease
C)sales-type lease
D)guaranteed lease

• A)direct financing lease
• B)operating lease
• C)sales-type lease
• D)guaranteed lease

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Definitions:

Global Warming

The long-term rise in Earth’s average temperature, primarily due to carbon dioxide emissions from burning fossil fuels.

Ambient Temperature

The temperature of the air surrounding a particular environment or object.

UV Light

Ultraviolet light, a type of electromagnetic radiation with a wavelength shorter than visible light but longer than X-rays, known for its capacity to induce sunburn and its use in sterilization.