Which of the Following Correctly States a Lessee Criterion for Classifying

question 90

Multiple Choice

Which of the following correctly states a lessee criterion for classifying a lease as a capital lease?

• A)The lessee guarantees the residual value.
• B)The sum of the lease payments exceeds 90% of the fair value of the asset.
• C)The asset is the property of the lessor at the end of the lease term.
• D)The lease term is equal to 75% or more of the estimated economic life of the leased asset.

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Definitions:

Architect

A professional who plans, designs, and oversees the construction of buildings, ensuring aesthetics, functionality, and safety.

Physical Sensations

Bodily feelings or experiences that result from sensory information or physical activity.

Parietal

Pertaining to the parietal lobe of the brain, which is involved in processing sensory information and spatial orientation.

Frontal

Pertaining to the front part of something, especially the frontal lobe of the brain, which is involved in decision making and voluntary movement.