Which of the following describes the lease term test a If th

Which of the following describes the lease term test?

a) If the lease term is 90% or more of the economic life, it is a finance lease.

Option D

Two of the tests for a lease to be recorded as financial lease :-

A) The lease period is 75% or more than Economic life of asset.

B) The present value of minimum lease payments is 90% or more than fair value of leased property