On March 1 of the Current Year, Stafford Corporation Leased

On March 1 of the current year, Stafford Corporation leased equipment under a six-year noncancellable lease. The estimated economic of the equipment is nine years. The fair value of the equipment is $780,000. The lease does not contain a bargain purchase option or a transfer of title. Stafford must classify this lease as a capital lease if the present value of the minimum lease payments is at least ________.

A) $390,000
B) $585,000
C) $702,000
D) $780,000