Which of the following factors would NOT result in a lease being classified as a finance lease?
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Question:
a- Lessee transfers ownership to the lessee by end of the lease term.
b - The title of the asset is not transferred to the lessee at end of lease term.
c - The lease term is for a major part of the economic life of an asset, even if the title is not transferred.
d - At inception date, the PV of lease payments to be received by Lessor = fair value (FV) of leased asset.
Related Book For
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
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