If the Fair Value of Land Is Less Than 25

question 112

True/False

If the fair value of land is less than 25% of the total fair value of the leased property at the inception of the lease then the land is considered to be immaterial which means both the lessee and the lessor treat the land and building as a single unit.

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Definitions:

Interstate Commerce

Commercial transactions or movement of goods and services across state boundaries, which is regulated by the federal government.

COBRA

A law that provides former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates.

Substantially Reduced

Significantly decreased in amount, size, extent, or degree.

Employee's Hours

The total time an employee is engaged in work for an employer, typically measured per day or week.