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What Characteristic(s)of Land Means That the Lessee Does Not Normally

Question 7

Multiple Choice

What characteristic(s) of land means that the lessee does not normally receive substantially all of the risks and rewards incidental to ownership (in which case making a lease of land an operating lease) ?


A) Land normally has an indefinite economic life.
B) Land being leased normally has a building on it.
C) Land is a tangible asset.
D) Land title must be transferred only by law.

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