All of the Following Would Qualify as a Capital Lease

question 145

Multiple Choice

All of the following would qualify as a capital lease except:

• A)The lease term is 80% of the asset's estimated useful life.
• B)The lease agreement contains a bargain purchase option.
• C)The present value of the lease payments equals 70% of the fair value of the leased asset.
• D)Title to the leased asset transfers to the lessee at the end of the lease term.
• E)The lease term equals 90% of the asset's estimated useful life.

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Definitions:

Deregulation

The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.

Intermodal Service

A transportation service that combines multiple modes of transport, such as rail, ship, and truck, to move goods efficiently from origin to destination.

Transport Buyer

An individual or entity responsible for purchasing transportation services or solutions.

Cost Per Hundredweight (Cwt)

A pricing measure used in various sectors, indicating the cost of 100 pounds of a product.