Which of the Following Is Used to Determine Whether the Lessor

Multiple Choice

Which of the following is used to determine whether the lessor maintains effective control of the leased asset?

A) Is the lease term greater than 90% of the asset's estimated life?
B) Does the sum of the payments equal or exceed substantially all of the fair value of the underlying asset?
C) Does the lease provide for an opportunity for the lessor to re-purchase the leased asset during the lease term at fair market value?
D) Does the lease transfer ownership of the leased asset to the lessee by the end of the lease term?