Which one of these conditions qualifies a lease as a "capital lease?"

Question

Quizplus · Accepted Answer

A capital lease is a lease that meets at least one of the following criteria: (1) the lease transfers ownership of the property to the lessee by the end of the lease term; (2) the lease contains an option to purchase the property at a bargain price; (3) the lease term is equal to or greater than 75% of the estimated economic life of the property; or (4) the present value of the lease payments is equal to or greater than 90% of the fair market value of the property. The option to purchase the property at a bargain price (criteria 2) is the only qualification listed among the choices.

Which One of These Conditions Qualifies a Lease as a "Capital