medium · Financial Accounting assets

For a lease to meet the 'major part' criterion, over what period should the lease term be compared to the asset's useful life?

1. A fixed statutory period of exactly ten years for all equipment.
2. The remaining useful life of the asset at the lease commencement date.
3. The length of time the lessee company intends to remain in operation.
4. The original useful life of the asset as estimated when it was newly acquired.

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