On the lessor's accounting, which of the following situations would prima facie lead to a lease contract being classified as an operating lease? * 4 O Existence of a bargain purchase option O Transfer of ownership by end of lease term O Present value of minimum lease payments is 50% of the fair value of the leased asset ) Lease term is for a major part of the asset's useful life
On the lessor's accounting, which of the following situations would prima facie lead to a lease contract being classified as an operating lease? * 4 O Existence of a bargain purchase option O Transfer of ownership by end of lease term O Present value of minimum lease payments is 50% of the fair value of the leased asset ) Lease term is for a major part of the asset's useful life
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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![On the lessor's accounting, which of the following situations would prima facie lead to a
lease contract being classified as an operating lease? *
O Existence of a bargain purchase option
O Transfer of ownership by end of lease term
O Present value of minimum lease payments is 50% of the fair value of the leased asset
O Lease term is for a major part of the asset's useful life](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F810fe569-a19a-478e-9553-1fcf870deebe%2Fd2fe6d56-28a8-42c2-a5aa-4d1a3c21bd92%2Ftw4j1x_processed.png&w=3840&q=75)
Transcribed Image Text:On the lessor's accounting, which of the following situations would prima facie lead to a
lease contract being classified as an operating lease? *
O Existence of a bargain purchase option
O Transfer of ownership by end of lease term
O Present value of minimum lease payments is 50% of the fair value of the leased asset
O Lease term is for a major part of the asset's useful life
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