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Which of the Following Questions Is Incorrect with Respect to Determining

Question 101

Multiple Choice

Which of the following questions is incorrect with respect to determining the accounting for leases?


A) Is the lease term greater than 75% of the asset's expected economic life?
B) Is the present value of the payments greater than 75% of the asset's fair market value?
C) Does the lease provide for an opportunity for the lessee to purchase the leased asset for a price less than fair market value?
D) Does the lease provide for a transfer of title of the leased asset at the end of the lease term to the lessee?

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