A lessee wants to lease an asset on a long-term noncancelable basis, but wants to avoid capitalizing the lease. The lessee is considering the following strategies to accomplish its objective:

Which of the strategies above will provide the desired result?
A) None
B) 1 and 3
C) 1 and 4
D) only 2

Question

A lessee wants to lease an asset on a long-term noncancelable basis, but wants to avoid capitalizing the lease. The lessee is considering the following strategies to accomplish its objective:

Which of the strategies above will provide the desired result?
A) None 
B) 1 and 3 
C) 1 and 4 
D) only 2

Quizplus · Accepted Answer

The Answer of A lessee wants to lease an asset on a long-term noncancelable basis, but wants to avoid capitalizing the lease. The lessee is considering the following strategies to accomplish its objective:

Which of the strategies above will provide the desired result?
A) None 
B) 1 and 3 
C) 1 and 4 
D) only 2

A Lessee Wants to Lease an Asset on a Long-Term