QUESTION 13 3.57142 points Save Answer Bambi Co. leased equipment from Citizens Co. for a 10 year period. Title to the property remains with Bambi Co. throughout the lease period; the property will be returned to Bambi Co. at the end of the lease life. No bargain purchase option exists that would allow Davis Co. to take title to the equipment. The present value of the lease payments that Davis Co. will make is below 90% of the equipment's fair market value. On the date the lease was signed, the equipment had a 15 year estimated remaining life. The following accounting options exist: 1. Davis Co. could record a long-term lease liability, leased equipment, depreciation on the equipment, and interest expense on the lease liability. II. Davis Co. could account for the lease as an operating lease. III. Davis Co. could account for the lease as a capital lease. IV. Davis Co. could record an annual rental expense on the leased property with added disclosures regarding the total amount of the rent due under the lease as well as the amount of rent due for each of the next 10 years O a. I. & II. O b. III. & IV O c. II. & IV. d. I. &