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Which of the Following Conditions Qualifies a Lease as a Finance

Question 116

Multiple Choice

Which of the following conditions qualifies a lease as a finance lease?


A) The present value of the minimum lease payments covers substantially all of the fair value of the property at the inception of the lease
B) The lease term covers the majority of the asset's economic life
C) The lease transfers the risks and benefits of ownership to the lessee
D) The leased asset is specific to the needs of the lessee and without significant changes would not be of use to another company
E) All of these

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