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As Per FASB 13, Which of the Following Is a Rule

Question 77

Multiple Choice

As per FASB 13, which of the following is a rule for a lease to qualify as an operating lease?


A) There is a transfer of ownership at lease expiration.
B) There is a bargain purchase option.
C) The lease term is for over 75% of the asset's economic life.
D) The present value of lease payments is less than 90% of the fair market value at lease origination.

Correct Answer:

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