3 years ago

Which of the following lease criteria would not qualify a lease as a capital lease?

1 answer:

6 0

Answer: C.

Explanation: capital lease is an agreement between the owner of an asset called the lessee and the borrower of the asset called the lessor for an agreed period of time for a consideration called lease rental.

At the end of the lease period the lessor has the option to buy the leased asset if he so wishes.

The lease term must be greater than or equal to 75% of the estimated economic life of the leased asset.

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