All of the following criteria would qualify a lease as a capital lease EXCEPT:
A) the present value of the lease payments equals 70% of the market value of the leased asset.
B) the lease term is 80% of the asset's estimated useful life.
C) title to the leased asset transfers to the lessee at the end of the lease term.
D) the lease agreement contains a bargain purchase option.
Correct Answer:
Verified
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