Which of the Following Facts Would Require a Lessor to Classify

Multiple Choice

Which of the following facts would require a lessor to classify a lease as an operating lease?

A) Important uncertainties exist about unreimbursable costs yet to be incurred by the lessor.
B) No bargain purchase option is provided for by the lease agreement.
C) The lease term is 65% of the estimated economic life of the leased property.
D) The sum of the minimum lease payments is 90% of the fair value of the leased property to the lessor.