Which One of the Following Would Cause a Lease to Be

Multiple Choice

Which one of the following would cause a lease to be accounted for as a capital lease?

A) The lease payments are greater than $10,000 per month.
B) The leased property is located on premises owned by the lessee.
C) The lease term is more than 75% of economic life of the property.
D) The value of the leased property is greater than 10% of the net assets of the lessee.