Generally Accepted Accounting Principles require the recognition of the assets and liabilities related to leases in the general ledger in which of the following situations? Question 4 options: 1) All leases, regardless of the length of the lease. 2) Leases that extend more than one year and cover LESS than 75% of the economic life. 3) All finance leases, but not operating leases. 4) Only leases where the ownership is transferred from the lessor to the lessee at the end of the lease term. 5) Leases with multiple year payments, which when discounted to present value, are LESS than 90% of the fair value of the asset.

Generally Accepted Accounting Principles require the recognition of the assets and liabilities related to leases in the general ledger in which of the following situations? Question 4 options: 1) All leases, regardless of the length of the lease. 2) Leases that extend more than one year and cover LESS than 75% of the economic life. 3) All finance leases, but not operating leases. 4) Only leases where the ownership is transferred from the lessor to the lessee at the end of the lease term. 5) Leases with multiple year payments, which when discounted to present value, are LESS than 90% of the fair value of the asset.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 8MC: At its inception, the lease term of Lease G is 65% of the estimated remaining economic life of the...

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