Which One of the Following Is One of the Capital

Multiple Choice

Which one of the following is one of the capital lease criteria?

A) The lease term is 75% or more of the useful life of the leased property.
B) Ownership of the property is transferred back to lessor at the end of the lease term.
C) The present value of the lease payments equals or exceeds 75% of the FMV of the property.
D) The lease does not contain a bargain purchase option.