Which of the following lease conditions would result in a finance lease to the lessee?
A) The lessee will return the property to the lessor at the end of the lease term.
B) The lessee can purchase the property for $1 at the end of the lease term.
C) The fair market value of the property at the inception of the lease is $20,000; the present value of the lease payments is $17,600.
D) The lease term is 70% of the property's economic life.
Correct Answer:
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