Question: For a lessor that reports under U.S. GAAP, a lease is classified as an operating lease if: the fair value of the asset is greater

For a lessor that reports under U.S. GAAP, a lease is classified as an operating lease if:

the fair value of the asset is greater than the sum of the lease payments and the assets expected residual value.

ownership risks are not substantially transferred to the lessee.

it cannot be classified as a sales-type lease or a direct financing lease.

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