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Office Equipment Recorded Under a Capital Lease Containing a Bargain

Question 7

Multiple Choice

Office equipment recorded under a capital lease containing a bargain purchase option should be amortized


A) Over the period of the lease using the interest method of amortization
B) Over the period of the lease using the straight-line method of amortization
C) In a manner consistent with the lessee's normal depreciation policy for owned assets
D) In a manner consistent with the lessee's normal depreciation policy for owned assets except that the period of amortization should be the lease term

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