Which of the following most likely would cause a lease to be classified as a capital lease?

Which of the following most likely would cause a lease to be classified as a capital lease?

Which of the following most likely would cause a lease to beclassified as a capital lease? a. The lease is for five ormore years. b. The lease is for $1 millionor more. c. The lease permits thelessee to purchase the equipment at the end of the lease for itsfair market value. d. The present value of thelease payments, calculated at the lessees typical rate of interestfor a similar purchase loan, is more than the original purchaseprice of the equipment.


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