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Which of the Following Is Not a Possible Treatment of a Capital

Question 29

Multiple Choice

Which of the following is not a possible treatment of a capital lease?


A) The lessee treats lease payments as periodic expenses.
B) The lessor treats the lease like a sale with vendor financing.
C) The lease is treated by a third party like a loan with income realized through implicit interest in each lease payment.
D) The lessee treats the lease as a purchase with debt financing.

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