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Homework answers / question archive / How should executory costs be treated?     As part of the lease payment

How should executory costs be treated?     As part of the lease payment

Accounting

  1. How should executory costs be treated?

       

    As part of the lease payment.

       

    Capitalised and amortised over the lease term.

       

    As an expense.

       

    None of the above

  2. QUESTION 10

  3. Which of the following would suggest that a lease should be classified as a finance lease?

       

    The present value of the lease liability is 50% or more of the fair value of the asset.

       

    The lease term is 25% or more of the assets useful life.

       

    The asset is likely to be returned to the owner at the end of the lease term.

       

    None of the above

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