Which of the four criteria should not be applied if a lease begins in the last 25% of an asset's useful life?
A)The 75% test and the bargain purchase option.
B)The 90% test and the bargain purchase option.
C)The 75% test and the 90% test.
D)The 90% test and the passage of title test.

Question

Quizplus · Accepted Answer

The 75% test and the 90% test should not be applied if a lease begins in the last 25% of an asset's useful life, as these tests are related to the lease term and economic life of the asset.

Which of the Four Criteria Should Not Be Applied If