For a lessor to consider a leasing arrangement to be a capital lease, collectibility of the lease payments must be reasonably assured and:
A) There must be no bargain purchase option.
B) The lessee must be responsible for all executory costs over the term of the lease.
C) The lease term must be 75% or more of the economic life of the asset.
D) Any costs to the lessor yet to be incurred must be reasonably predictable.
Answer: D
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.