On March 1 of the Current Year, Hill Corporation Leased

Multiple Choice

On March 1 of the current year, Hill Corporation leased sound equipment from McEntire Company. The equipment has a life of 8 years. There is no bargain purchase option or passage of title. For the lease to be considered a capital lease, it must have a term of at least ________.

A) 5 years
B) 6 years
C) 3 years
D) 8 years