Lessees may classify a lease as one of two types: (1)capital lease, or (2)operating lease.Current GAAP provides the criteria for determining which classification is appropriate.
Required:
Identify the criteria that a lessee uses to classify leases as either capital or operating leases.

Question

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The Answer of Lessees may classify a lease as one of two types: (1)capital lease, or (2)operating lease.Current GAAP provides the criteria for determining which classification is appropriate.
Required:
Identify the criteria that a lessee uses to classify leases as either capital or operating leases.

Lessees May Classify a Lease as One of Two Types