Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lease a does not contain a bargain purchase option

Lease A does not contain a bargain purchase option, but the present value of minimum...

80.2K

Verified Solution

Question

Accounting

image

Lease A does not contain a bargain purchase option, but the present value of minimum lease payments is equal to 90 percent of the asset's fair value. Lease B does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to 75 percent of the estimated economic life of the leased property. How should the lessee classify these leases? Lease A Lease B OA. Operating lease B. Operating lease C.Capital lease Capital lease Operating lease Capital lease Operating lease OD. Capital lease

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students