Which of the following is/are not one of the conditions of a capital lease?
A)transfer of ownership to the lessee at the end of the lease term
B)transfer of ownership to the lessee appears likely because of a "bargain" purchase option
C)lease extends for at least 70 percent of the asset's life
D)present value of the minimum contractual lease payments equals or exceeds 90 percent of the fair market value of the asset at the time the lessee signs the lease
E)all of the above

Question

Quizplus · Accepted Answer

A capital lease condition requires the lease to extend for at least 75 percent of the asset's life, not 70 percent.

Which of the Following Is/are Not One of the Conditions