Which of the Following Is Not a Condition Which Would

question 215

Multiple Choice

Which of the following is not a condition which would require the recording of a lease contract as a capital lease?

• A) The lease transfers ownership of the property to the lessee.
• B) The lease contains a bargain purchase option.
• C) The lease term is less than 75% of the economic life of the leased property.
• D) The present value of the lease payments equals or exceeds 90% of the fair market value of the leased property.