Which of the Following Qualifies as a Capital Lease

question 194

Multiple Choice

Which of the following qualifies as a capital lease?

• A)Four-year cancelable lease on a company vehicle.
• B)One-year lease on a computer with an option to renew for one more year.
• C)Five-year lease on a machine that has a five-year useful life.
• D)Monthly lease on office space that can be canceled with 30 days' notice.

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Definitions:

FICA-Social Security

A U.S. government program funded by payroll taxes, providing retirement benefits, disability income, and survivor benefits.