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When a Lease Includes Both Land and Buildings, the Land

Question 5

Multiple Choice

When a lease includes both land and buildings, the land and buildings are


A) allocated, based on the assets costs, on a pro rata portion of the present value of the minimum lease payments.
B) considered separately because land normally has indefinite useful life.
C) required to have the same depreciation period.
D) amortized over a longer period of time because the land doesn't lose value.

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