Which One of the Following Is Not Considered a Criteria

question 62

Multiple Choice

Which one of the following is not considered a criteria to capitalize a lease?

• A) The lease contains a bargain purchase option.
• B) The lease transfers ownership at the end of the lease term.
• C) The lease term is more than 75% of economic life of the property.
• D) The present value of minimum lease payments is less than 90% of the fair market value of the asset.

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Definitions:

Fourteenth Amendment

The Fourteenth Amendment to the United States Constitution grants citizenship to all persons born or naturalized in the U.S. and guarantees all citizens equal protection of the laws, significantly impacting civil rights.

Citizen

An individual recognized under the law as being a legal member of a sovereign state or belonging to a nation, with associated rights and obligations.

Revised Act

An updated version of a law that has been amended or rewritten for clarification, modernization, or other legislative reasons.

Incorporator

The individual or entity responsible for filing the formal documents needed to legally form a corporation.