Question:In which of the following situations would the lessee enjoy the economic benefits and bear the economic risks of leasing an asset?
A An asset with an economic life of 10 years is leased for 4 years.
B The lease agreement contains a bargain purchase option.
C At the end of the lease term, the lessee returns the leased asset to the lessor.
D The present value of the lease payments is $70,000 and the fair market value of the leased asset is $95,000.
+ AnswerB
+ Explanation
+ Report