The lessee should classify a lease as a capital lease if
A) there is a purchase option at the end of the lease term
B) the present value of the minimum lease payments is at least 75% of the fair value of the leased property
C) the present value of the minimum lease payments is at least 90% of the fair market value of the leased property to the lessor
D) the estimated residual value of the leased property at the termination of the lease is equal to 90% of the lessee's guaranteed residual value
Correct Answer:
Verified
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