If the Present Value of Lease Payments Represents Substantially All

Multiple Choice

If the present value of lease payments represents substantially all of the fair value of the leased property, the

A) conditions are met for the lease to be considered a finance lease.
B) lease is uneconomical and should not be entered into.
C) lease may be classified as an operating lease.
D) recording of a lease liability is optional-that is, the off-balance-sheet approach can be elected.