Question 15:

PVE-0002

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Which of the following is a characteristic of a capital lease?

	The lease term is substantially less than the estimated economic life of the leased property.
	The lease contains a bargain-purchase option.
	The present value of the minimum lease payments at the beginning of the lease term is 75% or more of the fair value of the property at the inception of the lease.
	The future obligation does not appear in the balance sheet of the lessee.