23. One of the four general criteria for a capital lease is that the present value at the beginning of the lease term of the minimum lease payments equals or exceedsa.the property's fair market value.b.90 percent of the property's fair market value.c.75 percent of the property's fair market value.d.50 percent of the property's fair market value.

Concept Capital lease Capital lease is also known as the finance lease The four conditions are…

Answered: One of the four general criteria for a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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23.

One of the four general criteria for a capital lease is that the present value at the beginning of the lease term of the minimum lease payments equals or exceeds

a.	the property's fair market value.
b.	90 percent of the property's fair market value.
c.	75 percent of the property's fair market value.
d.	50 percent of the property's fair market value.

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