Under U.S. GAAP, which of the following items would require a lessee to classify a lease of equipment as a capital lease?
a. There is no transfer of ownership to the lessee at the end of the lease term.
b. The lease does not contain a bargain purchase option.
c. The lease term is 90% of the estimated economic life of the lease property.
d. The present value of the contractual minimum lease payments is 75% of the fair value of the leased property.
C
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With respect to the role of the government in establishing accounting standards in the United States, which of the following statements is incorrect?
A) Most accounting reporting requirements are determined by the FASB, which is a non-government institution. B) The SEC, and not the FASB, has the ultimate legal authority over most financial reporting to investors. C) The FASB can act independently of the SEC and does not need the SEC's support in establishing accounting standards. D) The SEC, which is an agency of the federal government, is empowered to ensure full and fair disclosures by corporations. E) The SEC is allowed to take an active role in establishing accounting standards.
The _____ describes the origin of the shipment, provides specific directions for the carrier, delineates the transportation contract terms, and functions as a receipt for the shipment
a. bill of lading b. implied warranty of transportation c. freight bill d. acknowledgment e. implied warranty of merchantability