Which of the following criteria would lead to a lease's being accounted for as a capital lease?
A) The lease is for real property.
B) The lease term is for four years, while the asset's useful life is ten years.
C) The present value of the minimum lease payments is $92,000, while the fair market value of the leased asset is $100,000.
D) The lease asset is guaranteed to revert to the lessor at the end of the lease term.
Correct Answer:
Verified
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