On March 1,2014,Hardy Corp

On March 1,2014,Hardy Corp.became the lessee of new equipment under a noncancelable six-year lease.The total estimated economic life of this equipment is ten years.The fair value of this equipment on March 1,2014,was $100,000.The lease does not meet the criteria for classification as a capital lease with respect to transfer of ownership of the leased asset,or bargain purchase option,or lease term.Nevertheless,Hardy must classify this lease as a capital lease if,at inception of the lease,the present value of the minimum lease payments (excluding executory costs) is equal to at least

A) $67,500.
B) $75,000.
C) $90,000.
D) $100,000.