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Which of the Following Applies to Leveraged Leases

Question 60

Multiple Choice

Which of the following applies to leveraged leases?


A) Leveraged leases are a special type of operating lease involving three parties.
B) The lessor acquires an asset to be leased by borrowing money from a third party.
C) From a lessor's viewpoint, this type of lease is not any different from other leases.
D) The FASB concluded in SFAS No. 13 that the financing-type lease plus debt transaction analogy was adequate to report leveraged leases.

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