lease i
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A lease is classified as financial because it meets the criteria that the term of the lease is more than 75% of the life of the leased asset. For how long should that asset be amortized?
A) The term of the lease
B) An average of the useful life and term of the lease
C) It is not amortized because it is not the owner
D) The useful life.
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