Which One of the Following Would Cause a Lease to Be

question 69

Multiple Choice

Which one of the following would cause a lease to be accounted for as a capital lease?

• A)The lease payments are greater than $10,000 per month.
• B)The leased property is located on premises owned by the lessee.
• C)The lease term is more than 75% of economic life of the property.
• D)The value of the leased property is greater than 10% of the net assets of the lessee.

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