A lessee with a lease containing a bargain purchase option should depreciate the leased asset over the * A O asset's remaining economic life. O life of the asset or the term of the lease, whichever is shorter. O life of the asset or the term of the lease, whichever is longer. O term of the lease.

A lessee with a lease containing a bargain purchase option should depreciate the leased asset over the * A O asset's remaining economic life. O life of the asset or the term of the lease, whichever is shorter. O life of the asset or the term of the lease, whichever is longer. O term of the lease.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter11: Notes, Bonds, And Leases

Section: Chapter Questions

Problem 12Q

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Concept explainers

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

A lessee with a lease containing a bargain purchase option should depreciate the leased asset
over the * A
O asset's remaining economic life.
O life of the asset or the term of the lease, whichever is shorter.
O life of the asset or the term of the lease, whichever is longer.
O term of the lease.

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If there is a reasonable certainly that lessee will obtain ownership by the end of the lease term, the depreciation of the leased asset is based on the Useful life of the asset or lease term, whichever is longer Useful life of the asset or lease term, whichever is shorter Useful life of the asset Lease term
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