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When should a business capitalize a lease under US GAAP? What criteria need to be met in order to capitalize a lease under US GAAP? What are the advantages and disadvantages of capitalizing leases from the standpoint of the lessee? 1-2 paragraphs
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Dear Student, PFA solution. Regards.  

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For tax purposes and financial statement if it meets at least one of the following criteria a
business capitalize a lease under US GAAP:
1. Ownership transfer test. By the end of the lease term the...