Which of the Following Criteria Would Allow a Lease to Be

question 181

Multiple Choice

Which of the following criteria would allow a lease to be recorded as an operating lease?

• A) The lease transfers ownership of the property to the lessee.
• B) The lease contains a bargain purchase option.
• C) The lease term is less than 75% of the economic life of the leased property.
• D) The present value of the lease payments equals or exceeds 90% of the fair market value of the leased property.

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