Which of the Following Facts Would Preclude a Lessor from Classifying

Multiple Choice

Which of the following facts would preclude a lessor from classifying a lease as a sales-type or direct financing lease?

A) The undiscounted sum of the minimum lease payments is 90% of the fair value of the leased property to the lessor.
B) The collectability of the minimum lease payments is reasonably assured.
C) The lease term is 90% of the estimated economic life of the leased property.
D) No important uncertainties exist about non-reimbursable costs yet to be incurred by the lessor.