What conditions can exist for a capital lease to be, Ask an Expert

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What conditions can exist for a capital lease to be capitalized on a balance sheet?

The lessee can purchase the property at less than its true market value when the lease expires.
The lease runs for a period equal to or greater than 70% of the asset's life.
Under the terms of the lease, ownership of the property is not transferrable from the lessor to the lessee.
The future value of the lease payments is equal to or greater than 90% of the initial value of the asset.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9890746

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