Question 9 Which of these contractual terms would lead a company to account for a...
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Accounting
Question 9
Which of these contractual terms would lead a company to account for a lease contract under the capital lease method? (check all that apply)
The IRS requires capital lease method for tax purposes for this contract
The lease runs for 2 years on a truck that is expected to have a 6 year life
The present value of the lease payments is $89,000. The truck could be bought today for $100,000 cash.
Ownership stays with the lessor at the end of the lease
The lessee can buy the truck at its current market value at the end of the lease
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