For a Leased Asset Under a Lease That Qualifies as a Capital

question 21

Multiple Choice

For a leased asset under a lease that qualifies as a capital lease because of a bargain purchase option,the depreciation period used by the lessee must be:

• A)The same period that was used by the lessor.
• B)The useful life to the lessee.
• C)The term of the lease regardless of the lease provisions.
• D)The remaining life of the asset at the time the lease agreement took effect.

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Definitions:

Dead

A state of biological cessation where an organism no longer exhibits any signs of life or metabolic activity.

Necessary Condition

A condition that must be present for an event or entity to occur or exist.

Birthday

The anniversary of the day on which a person was born, typically celebrated as an annual event.

Necessary Condition

A requirement that must be met for a statement to be true or for an event to occur; without it, the statement cannot be true or the event cannot happen.