Which of the Following Is Not Among the Criteria for Classifying

Multiple Choice

Which of the following is not among the criteria for classifying a lease as a capital lease?

A) The agreement specifies that ownership of the asset transfers to the lessee.
B) The agreement contains a bargain purchase option.
C) The noncancelable lease term is equal to 90% or more of the expected economic life of the asset.
D) The present value of the minimum lease payments is equal to or greater than 90% of the fair value of the asset.