All of the Following Criteria Would Qualify a Lease as a Capital

Multiple Choice

All of the following criteria would qualify a lease as a capital lease EXCEPT:

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