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Lease M does not contain a bargain purchase option ..?

 but the lease term is equal to90% of the estimated economic life of the leased property. Lease P does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to75% of the estimated economic life of the leased property. How should the lessee classify these leases?

   Lease M           Lease P          

A. Capital lease    Operating lease  

B. Capital lease      Capital lease

C. Operating lease Capital lease

D. Operating lease Operating lease 

Accounting Cost Accounting CMA
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Question added by هيثم ناجى , محاسب اول , الفيوم لصناعة السكر
Date Posted: 2015/07/24
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Hardeep Sharma
by Hardeep Sharma , Finance & Administration Assistant , Sensor Merchant Nigeria Limited

D. Operating lease Operating lease

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