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Which of the Following Is Not One of the Provisions

Question 10

Multiple Choice

Which of the following is not one of the provisions of a capital lease?


A) Bargain purchase option
B) 100% of the payment is rental expense
C) Lease term is equal to 75% or more of the economic life of the property
D) Title of the property transfers automatically at the end of the lease period
E) Present value of lease payments at the beginning of the lease is equal to or greater than 90% of the value of the leased asset

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