On February 1 of the Current Year, Greenstein Corporation Leased

Multiple Choice

On February 1 of the current year, Greenstein Corporation leased equipment under a six-year noncancellable lease. The estimated economic of the equipment is ten years. The fair value of the equipment is $1,100,000. The lease does not contain a bargain purchase option or a transfer of title. Greenstein must classify this lease as a capital lease if the present value of the minimum lease payments is at least ________.

A) $825,000
B) $880,000
C) $990,000
D) $1,100,000