If a lease meets any of the FASB Standard No. 13 criteria, it should be shown as a capitalized lease, meaning the present value of all its payments should be included as an asset and corresponding liability on the firm's balance sheet.

Question

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FASB Standard No. 13 requires leases that meet certain criteria (such as transfer of ownership, bargain purchase option, or lease term greater than 75% of the asset's economic life) to be shown as capitalized leases on the balance sheet, with the present value of all lease payments included as both an asset and corresponding liability.

If a Lease Meets Any of the FASB Standard No