Which of the Following Criteria Would Require a Lessee to Classify

question 94

Multiple Choice

Which of the following criteria would require a lessee to classify a lease of land as a capital lease? 1.Transfer of ownership
2.Contains a bargain purchase option
3.Lease term is 75% of economic life
4.Present value of lease payments is 90% of fair value

• A) any of the above criteria
• B) criterion 1 or 2
• C) criterion 1, 2, or 3
• D) criterion 1, 2, or 4

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Definitions:

Tibialis Posterior

A muscle located in the lower leg that helps support the arch of the foot and plays a role in walking and running.

Popliteus

A small muscle located at the back of the knee joint, important for unlocking the knee from a fully extended position.

Vastus Intermedius

A muscle located in the thigh, lying deep to the rectus femoris and part of the quadriceps femoris group, responsible for extending the knee.

Rectus Femoris

A muscle in the quadriceps group located in the thigh, responsible for extending the knee and flexing the thigh.