Which of the Following Questions Is Incorrect with Respect to Determining

question 49

Multiple Choice

Which of the following questions is incorrect with respect to determining the accounting for leases?

• A)Is the lease term greater than 75% of the asset's expected economic life?
• B)Is the present value of the payments greater than 75% of the asset's fair market value?
• C)Does the lease provide for an opportunity for the lessee to purchase the leased asset for a price less than fair market value?
• D)Does the lease provide for a transfer of title of the leased asset at the end of the lease term to the lessee?