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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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