Which of the following is not a condition that would cause a capital lease to be included on the balance sheet?
At the start of the lease, the present value of the rental payments is below 75% of the estimated fair market value of the leased assets.
The lease transfers ownership of the asset to the lessee by the end of the lease contract.
The lease contains an option for the lessee to purchase the asset at a bargain price (far below market value)
The term of the lease equals or exceeds 75% of the asset's estimated economic life.
