Which of the following lease conditions would result in a capital lease to the lessee?
A) The fair market value of the property at the inception of the lease is $20,000; the greatest value of the lease payments is $17,600
B) The lease term is 70% of the property's economic life
C) The lessee will return the property to the lessor at the end of the term
D) Thee lessee can purchase the property for $1 at the end of the lease term
Answer: D
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