All of the tests or conditions identified in SFAS No. 13 must be met before a lease can be capitalized.

Question

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According to SFAS No. 13, a lease can be capitalized if any one of several criteria are met, not all. These criteria include transfer of ownership by the end of the lease term, a bargain purchase option, lease term for the major part of the economic life of the asset, or if the present value of the minimum lease payments equals or exceeds substantially all of the fair value of the leased property.

All of the Tests or Conditions Identified in SFAS No