Land Leases Are Capitalized Only If Title Passes to the Lessee

question 37

True/False

Land leases are capitalized only if title passes to the lessee at the end of the lease term and the lease contract contains a bargain purchase option.

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Definitions:

Parliamentary Supremacy

A principle of UK constitutional law stating that Parliament has the supreme legal authority to create or end any law, generally without any legal limit.

Legislation

Laws enacted by a governmental body, such as statutes or acts, established to regulate, authorize, sanction, grant, declare, or restrict.

Mediator

A neutral third party who facilitates discussion between parties to a dispute to encourage and assist their coming to an agreement; sometimes referred to as a conciliator.

Agreement

A mutual understanding or arrangement between two or more parties, usually establishing a legal obligation.