One of the four general criteria for a capital lease specifies that the lease term be equal to or greater than
A) the estimated economic life of the property.
B) 90 percent of the estimated economic life of the property.
C) 75 percent of the estimated economic life of the property.
D) 50 percent of the estimated economic life of the property.

Question

Quizplus · Accepted Answer

One of the criteria for a lease to be classified as a capital lease is that the lease term must be equal to or greater than 75 percent of the estimated economic life of the leased property.

One of the Four General Criteria for a Capital Lease