Question: Identify whether the following are characteristics relevant to the classification of a lease as a finance (capital) lease for the lessor. a. b. C. d.

Identify whether the following are characteristics relevant to the classification of a lease as a finance (capital) lease for the lessor.

a. b. C. d. c. f. Present value of minimum lease payments

a. b. C. d. c. f. Present value of minimum lease payments comprise at least 75% of the fair value of the leased asset (under ASPE). Present value of lease payments comprise substantially all of the fair value of the lease asset. The lease is a lease of land. The lease contains a bargain purchase option. The lease term comprises a major part of the economic life of the asset. The lease term comprises at least 75% of the economic life of the asset (under ASPE). Yes/No

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