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Gentle Ltd Leases Manufacturing Equipment from Soft Ltd

Question 7

Multiple Choice

Gentle Ltd leases manufacturing equipment from Soft Ltd.The lease is non-cancellable,and Gentle Ltd has the right to purchase the equipment at the end of the lease term for $50,000.Which of the following statements is true?


A) Gentle Ltd has legal ownership of the equipment.
B) Gentle Ltd controls the equipment but does not have legal ownership of the equipment.
C) Gentle Ltd does not have control over the equipment.
D) Gentle Ltd is the lessor of the equipment.

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