Which of the following conditions will NOT cause a lease to be categorized as a finance lease?

Multiple Choice

• The present value of the contractual lease payments equals or exceeds 90 percent of the fair market value of the asset at the time the lease is signed.

• It extends for at least 65 percent of the asset's life.

• It contains a purchase option on the asset that is reasonably certain to be exercised.

• It transfers ownership to the lessee at the end of the lease term.