Which One of These Conditions Must Be Met for a Lease

question 156

Multiple Choice

Which one of these conditions must be met for a lease to qualify as a capital lease?

• A) the lease contains a bargain purchase price at the end of the lease
• B) the lease term is equal to 75% or more of the estimated life of the leased property
• C) the present value of the minimum lease payments equals 90% or more of the fair value of the leased property at the inception of the lease.
• D) all of the other answers are correct.

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