(CMA adapted, Dec 92 #10) There are many similarities between lessee and lessor accounting for the capitalization of leases. Which one of the following is a criterion for the capitalization of a lease by a lessee?
a. The lease transfers ownership of the property to the lessee by the end of the lease term.
b. The lease term is at least 90% of the remaining life of the asset at the beginning of the lease.
c. The present value of the minimum lease payments is 75% or more of the fair market value of the leased asset.
d. Future costs are reasonably predictable.
e. The lease term is at least 60% of the remaining life of the asset at the beginning of the lease.
A
You might also like to view...
Which of the following statements is true about mass media?
A) Personal channels of communication are often called mass media. B) Television advertising is an example of mass media. C) Sales force is a communication channel included in mass media. D) B-to-B companies spend a higher percentage on mass media than consumer-product companies.
In Microsoft Excel 2010, tiny line charts inserted in a table are called SmartArt
Indicate whether the statement is true or false
Brad Turret, one of the managers of a multi-national company, is responsible for generating revenues and controlling costs in order to increase the operating income of his division
However, he is not concerned about investment-related decisions. Brad is most likely to be the manager of a(n) ________. A) cost center B) investment center C) profit center D) revenue center
Given the data below for the Zoom Corporation, its required return is
1. Beta = 0.8 2. Expected price appreciation = 7% 3. Market risk premium = 8% 4. Risk free rate = 4% 5. Next year's dividend = $1.00 6. Current market price = $50 A) 10.4%. B) 12.0%. C) 12.4%. D) 15.0%.