Ifa corporation signs a ten-year lease for a building and the present value of the lease...
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Ifa corporation signs a ten-year lease for a building and the present value of the lease payments is $250,000, the lease is a capital lease under ASC 840 if the Multiple Choice building reverts back to the lessor at the end of the lease remaining useful Ide of the bulding i 20 years fair value of the bulding is $1,000.000 lessor can parchase the buding for $5.000 at the end of the lease when the fair value is estimated to be $25.000 Ifa corporation signs a ten-year lease for a building and the present value of the lease payments is $250,000, the lease is a capital lease under ASC 840 if the Multiple Choice building reverts back to the lessor at the end of the lease remaining useful Ide of the bulding i 20 years fair value of the bulding is $1,000.000 lessor can parchase the buding for $5.000 at the end of the lease when the fair value is estimated to be $25.000
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ANSWER A Building reverts back to the lessor at the end of the lease There is an ownership transfer ... View the full answer
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