Under USGAAP,which of the Following Items Would Require a Lessee to to Classify

question 22

Multiple Choice

Under U.S.GAAP,which of the following items would require a lessee to classify a lease of equipment as a capital lease?

• A) There is no transfer of ownership to the lessee at the end of the lease term.
• B) The lease does not contain a bargain purchase option.
• C) The lease term is 90% of the estimated economic life of the lease property.
• D) The present value of the contractual minimum lease payments is 75% of the fair value of the leased property.

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