Corporate FInace Assignment/ Professional Essay Writers
1. Which of the following conditions would automatically cause a lease to be a capital lease?
A. The lessee can purchase the asset below fair market value at the end of the lease.
B. The lease transfers ownership of the asset to the lessee by the end of the lease.
C. The lease term is more than 75% of the asset’s economic life.
D. The present value of the lease payments is more than 90% of the asset’s market value at lease inception.
E. All of these would lead to the lease being considered a capital lease. Get Finance Help Today