Lease Y contains a bargain purchase option and the lease term is equal to 75 percent of th estimated economic life of the leased property.Lease Z contains a bargain purchase optio and the lease term is less than 75 percent of the estimated economic life of the leased property.How would the lessee classify these leases?
A)Choice 1
B)Choice 2
C)Choice 3
D)Choice 4

Question

Lease Y contains a bargain purchase option and the lease term is equal to 75 percent of th estimated economic life of the leased property.Lease Z contains a bargain purchase optio and the lease term is less than 75 percent of the estimated economic life of the leased property.How would the lessee classify these leases? 
A)Choice 1 
B)Choice 2 
C)Choice 3 
D)Choice 4

Quizplus · Accepted Answer

The Answer of Lease Y contains a bargain purchase option and the lease term is equal to 75 percent of th estimated economic life of the leased property.Lease Z contains a bargain purchase optio and the lease term is less than 75 percent of the estimated economic life of the leased property.How would the lessee classify these leases? 
A)Choice 1 
B)Choice 2 
C)Choice 3 
D)Choice 4

Lease Y Contains a Bargain Purchase Option and the Lease