If a lease qualifies as a capital lease, which of the following combinations of payments would be included?
A)minimum periodic rental payments plus executory costs
B)minimum periodic rental payments plus the payment required for a bargain purchase option
C)minimum periodic rental payments minus any payment required for a guarantee of the residual value
D)minimum periodic rental payments minus any payments required for failure to renew or extend the lease

Question

Quizplus · Accepted Answer

Capital leases include minimum periodic rental payments and the payment required for a bargain purchase option. These payments are capitalized on the balance sheet, reflecting the acquisition of an asset and the incurrence of a liability.

If a Lease Qualifies as a Capital Lease, Which of the Following