If the fair value of land is less than 25% of the total fair value of the leased property at the inception of the lease then the land is considered to be immaterial which means both the lessee and the lessor treat the land and building as a single unit.
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Q3: A capital lease is a lease where
Q4: An advantage of an operating lease is
Q6: If at any time the lessee and
Q7: Because the risks and benefits of ownership
Q8: Presentation of the lease on the lessor's
Q9: A required disclosure of a direct financing
Q20: If a lease qualifies as a capital
Q22: Which of the following correctly states a
Q62: A direct financing capital lease results in
Q72: A lessee reports noncash investing and financing
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