Tanya is a lawyer at Leaseonic Corp. She is evaluating the company's current lease agreements. Tanya recently hired an intern, Michael, and assigned him the task of listing the provisions for tax guidelines related to lease contracts. Tanya needs to check and find mistakes in the provisions that Michael listed.
Of the following points outlined in Michael's document, which are correct? Check all that apply.
The lease agreement can restrict the use of the equipment so that only its lessee or a related party can use the asset after the expiration of the term.
The residual value of an equipment after expiration of the lease should be at least \( 20 \% \) without adjusting for inflation.
At the end of the lease, the remaining useful life of the equipment must be more than or equal to 1 year.
The lessee has the option of buying the equipment at the expiration of the lease contract at its fair market value.
The lessee or any other party has the right to purchase the equipment at the expiration at a predetermined fixed price specified in the lease contract.
