Which of the following is not a criterion for the lessor to classify a lease as either a sales-type or direct- financing-type lease?

a. The lease is a capital lease for the lessee.

b. Collectibility of the minimum lease payments is reasonably predictable.

c. The incremental borrowing rate is used to calculate the present value of the minimum lease payments.

d. No important uncertainties exist regarding the unreimbursable costs yet to be incurred by the lessor under the lease.