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Minor portion of rights retained by seller-lessee (less than 10 percent of FV of property):

A) Seller-lessee holds significant rights
B) Seller-lessee retains minor rights
C) Full transfer of rights to buyer-lessee
D) No rights retained by seller-lessee

User Eeji
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1 Answer

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Final answer:

The correct answer is B) Seller-lessee retains minor rights, which means the seller-lessee keeps less than 10 percent of the fair value of the property, indicating a minor retention of rights.

Step-by-step explanation:

When a seller-lessee retains a minor portion of rights in a sale and leaseback transaction, specifically less than 10 percent of the fair value (FV) of the property, it is generally understood that the seller-lessee retains minor rights.

Therefore, the correct answer to this question is B) Seller-lessee retains minor rights.

This implies that while some residual value or rights in the form of a lease may remain with the seller-lessee, the substantial majority of rights and benefits have been transferred to the buyer-lessee.

User Trudolf
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