Glade Co. leases computer equipment to a customer under a direct-financing lease. Which of the following must

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Glade Co. leases computer equipment to a customer under a direct-financing lease. Which of the following must be true about the lease contract?
The asset is of specialized nature, which means it has no alternative use to the lessor at the end of the lease term.

A third party guarantees the residual value of the leased asset.

The lessee is given an option to purchase the asset and the lessee is reasonably certain to exercise this option.

The lease term is for a major part of the economic life of the asset (i.e., substantially all of the asset's useful life).

Posted Date: Nov 28, 2021 12:54 PM

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Glade Co. leases computer equipment to a customer under a direct-financing lease. Which of the following must

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Solution The correct answers are ac and d a The asset is of specialized nature which means it has no ... View the full answer

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