On February 1, 2014, Behrend Corporation (a U.S. firm) became the lessee of equipment under a five-year, non-cancellable lease. The estimated economic life of the equipment is 8 years. The fair market value of the equipment was $120,000. The lease does not meet the definition of a capital lease in terms of a bargain purchase option, transfer of title, or the lease term. However, Behrend must apply capital lease treatment if the present value of the minimum lease payments is at least:

A)

$120,000.

B)

$108,000.

C)

$90,000.

D)

$81,000