The FASB Defines Capital Lease as Leases That Meet the Following

The FASB defines capital lease as leases that meet the following:
I.The lease agreement transfers ownership to the lessee before the lease expires.
II.The lessee can purchase the asset for a bargain price when the lease expires.
III.The lease lasts for at least 75% of the asset's estimated economic life.
IV.The present value of the lease payments is at least 90% of the asset's value.

A) I or II
B) I or II or III
C) I or II or III or IV
D) II or III or IV