Which of the Following Lease Criteria Would Not Qualify a Lease

question 3

Multiple Choice

Which of the following lease criteria would not qualify a lease as a capital lease?

• A) The lease transfers ownership of the property to the lessee by the end of the lease term.
• B) The lease contains an option to purchase the leased property at its fair market value.
• C) The lease term is equal to or greater than 75% of the estimated economic life of the leased property.
• D) The present value of the minimum lease payments equals or exceeds 90% of the fair value of the leased property.

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Definitions:

Duty To Retreat

A legal principle that requires a person to attempt to avoid conflict by retreating from an attacker if safely possible, before using force in self-defense.

Own Home

Refers to possessing or having ownership of one's place of residence.

Evil Motive

A wrongful intention that is often the driving force behind harmful actions or crimes.

Criminal Act

An action or omission that constitutes an offense that may be prosecuted by the state and is punishable by law.