Which of the Following Criteria Would Indicate That a Lease

Multiple Choice

Which of the following criteria would indicate that a lease should be accounted for as a finance lease?

A) The present value of the minimum lease payments is $93,500, while the fair market value of the leased asset is $100,000.
B) The lease is for real property.
C) The lease asset is guaranteed to revert to the lessor at the end of the lease term.
D) The lease term is for four years, while the asset's useful life is ten years.