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What are the four conditions that can create capital lease?

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What are the four conditions that can create capital lease? And, how is a capital lease different from an operating lease?

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What are the four conditions that can create capital lease? And, how is a capital lease different from an operating lease?

One citation (APA format)

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What are the four conditions that can create capital lease? And, how is a capital lease different from an operating lease?

Four distinct conditions qualify a lease as a capital lease. If any one of the four conditions is met, the lease must be accounted for as a capital lease, and not as an operating lease. The first condition is that if the lease agreement transfers title to the lessee at the end of the lease period, it is a ...

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