Boatie Company has four leases. The terms of the four leases are summarized in the table below.

	Transfer of Ownership at the End of the Lease Term?	Cash Price of Leased Asset	Economic Life of Leased Asset	Present Value of Lease Payments	Length of the Lease	Existence of Bargain Purchase Option in the Lease Contract
Lease 1	No	100,000	20 Years	92,000	13 Years	No
Lease 2	No	100,000	20 Years	82,000	16 Years	No
Lease 3	No	100,000	20 Years	92,000	16 Years	No
Lease 4	No	100,000	20 Years	82,000	13 Years	No

Of these four leases, which should Boatie Company account for as capital leases?

Note: ALL of the leases are non cancellable.

a) Lease 1 only

b) Lease 2 only

c) Lease 3 only

d) Lease 4 only

e) Leases 1, 2, and 3 only

f) All of the leases should be accounted for as capital leases.

g) Leases 3 and 4 only

h) None of the leases should be accounted for as capital leases.