If a Lessee Classifies a Lease as a Capital Lease

question 53

Multiple Choice

If a lessee classifies a lease as a capital lease and uses the straight-line method of depreciation, the amount to be amortized over the lease term is

• A) the original amount capitalized less the present value of the guaranteed residual value (if applicable)
• B) the original amount capitalized less the unguaranteed residual value
• C) the original amount capitalized less the guaranteed residual value (if applicable)
• D) fair value of the leased property

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Definitions:

Black Housing

The residential spaces and communities predominantly occupied by African Americans, often marked by historical and systemic disparities.

Redlining

A discriminatory practice by banks and other financial institutions that refuse or limit loans, mortgages, insurance, etc., within specific geographic areas, often based on race.

Postwar Period

The era immediately following the end of a war, often marked by reconstruction, realignment of political powers, and societal changes.

De Facto Segregation

Racial separation that occurs in practice but is not enforced by law, often seen in housing, education, and employment.