All of the Following Would Qualify as a Capital Lease

Multiple Choice

All of the following would qualify as a capital lease except:

A) The lease term is 80% of the asset's estimated useful life.
B) The lease agreement contains a bargain purchase option.
C) The present value of the lease payments equals 70% of the fair value of the leased asset.
D) Title to the leased asset transfers to the lessee at the end of the lease term.
E) The lease term equals 90% of the asset's estimated useful life.