Statement of one of the capitalization criteria


Which of the following is a correct statement of one of the capitalization criteria?

a. The lease transfers ownership of the property to the lessor.

b. The lease contains a purchase option.

c. The lease term is equal to or more than 75% of the estimated economic life of the leased property.

d. The minimum lease payments (excluding executory costs) equal or exceed 90% of the fair value of the leased property.

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Accounting Basics: Statement of one of the capitalization criteria
Reference No:- TGS095153

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