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.
