If a corporation signs a ten-year lease for a building and the present value of the lease payments is $250,000, the lease is a capital lease under ASC 840 if the Multiple Choice building reverts back to the lessor at the end of the lease Oemaining useful life of the bulding b 20 years, fair value of the building is $1,000,000 lessor can purchase the bulding for 55.000 at the end of the lease when the fair value is estimated to be $25.000