When Measuring the Present Value of Future Rentals to Be

Question 2
Multiple Choice

When measuring the present value of future rentals to be capitalized as part of the purchase price in a lease that is be accounted for as a purchase,identifiable payments to cover taxes,insurance,and maintenance should be A)Included in the future rentals to be capitalized B)Excluded from future rentals to be capitalized C)Capitalized but at a different discount rate and recorded in a different account than future rental payments D)Capitalized but at a different discount rate and for a relevant period that tends to be different than that for future rental payments

B