If a Lease Is Structured So That the Lessee Pays

question 128

True/False

If a lease is structured so that the lessee pays a set rental payment each period plus an additional amount based upon usage or determined by a change in an index, these are contingent rental payments which if included in the lease agreement the rental payments should be expensed when the contingency is likely to be met.

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Definitions:

Sieve Tubes

Specialized cells in the phloem of vascular plants that facilitate the transport of sugars and other nutrients.

Translocation

The process of moving something from one place to another, in genetics, refers to a chromosome abnormality caused by rearrangement of parts between nonhomologous chromosomes.

Stomata

Pores on plant leaves and stems that allow gas exchange between the plant and the atmosphere.

Osmotic Pressure

The pressure that must be applied to a solution to prevent the inward flow of water across a semipermeable membrane, related to the concentration of solutes.