Which of the following is not among the criteria for classifying a lease as a capital lease?
A)The agreement specifies that ownership of the asset transfers to the lessee.
B)The agreement contains a bargain purchase option.
C)The noncancelable lease term is equal to 90% or more of the expected economic life of the asset.
D)The present value of the minimum lease payments is equal to or greater than 90% of the fair value of the asset.

Question

Quizplus · Accepted Answer

The correct criterion is that the noncancelable lease term is equal to 75% or more of the expected economic life of the asset, not 90%.

Which of the Following Is Not Among the Criteria for Classifying