Wayne Technical Corporation Signed a Lease for Equipment,which Requires Lease

Question 171
Multiple Choice

Wayne Technical Corporation signed a lease for equipment,which requires lease payments of $50,000 per year for four years.The equipment has an estimated useful life of 7 years.This lease would be a capital lease if: A)the equipment is leased for 4 years. B)the present value of the lease payments equals $150,000 and the fair value of the equipment is $200,000. C)title to the equipment does not transfer to the lessee at the end of the lease term. D)the lease agreement allows Wayne to purchase the equipment for $5 at the end of the lease.