On March 1 of the Current Year,Stafford Corporation Leased Equipment

Essay

On March 1 of the current year,Stafford Corporation leased equipment under a six-year noncancellable lease.The estimated economic of the equipment is nine years.The fair value of the equipment is $750,000.The lease does not contain a bargain purchase option or a transfer of title.Stafford must classify this lease as a capital lease if the present value of the minimum lease payments is at least ________.
A)$500,000
B)$562,500
C)$675,000
D)$750,000