Under US GAAP, which of the following would require the lessee to classify a lease as a

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Under US GAAP, which of the following would require the lessee to classify a lease as a capital lease?

A . Th e term is 60% of the useful life of the asset.

B . Th e lease contains an option to purchase the asset at fair value.

C . Th e present value of the lease payments is 95% of the fair value.

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International Financial Statement Analysis Workbook

ISBN: 9781119628095

4th Edition

Authors: Thomas R. Robinson, Elaine Henry, Wendy L. Pirie

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Question Posted: Mar 28, 2024 04:01 AM

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Under US GAAP, which of the following would require the lessee to classify a lease as a

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C is correct If the present value of the lease payments is greater than 90 of ...View the full answer

International Financial Statement Analysis Workbook

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