What Is a Capitalized Lease

Multiple Choice

What is a capitalized lease?

A) A financial lease where the present value of the lease payments include the cost of servicing and maintaining the leased asset.
B) An operating lease where the fair market value of the leased asset at the end of the lease term is subtracted from the present value of the lease payments.
C) A financial lease that has the present value of the lease payments included as an asset and as an offsetting liability on the company's balance sheet.
D) An operating lease where the present value of of the lease payments is greater than the purchase cost of the leased asset.