The following are the characteristics of a lease:
Required:
Determine the present value of minimum lease payments (MLP)and the appropriate classification of this lease for the lessee.

Question

The following are the characteristics of a lease:
  Required:
Determine the present value of minimum lease payments (MLP)and the appropriate classification of this lease for the lessee.

Quizplus · Accepted Answer

The Answer is <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1321/11ea7ef7_da6d_2803_92e1_793b034980a0_TB1321_00_TB1321_00_TB1321_00_TB1321_00.jpg" alt="  The present value of the MLP is less than 90%,so this is not a finance lease (is an operating lease)" class="answers-bank-image d-block" rel="preload" > The present value of the MLP is less than 90%,so this is not a finance lease (is an operating lease)

The Following Are the Characteristics of a Lease