Which of these contractual terms would lead a company to


Which of these contractual terms would lead a company to account for a lease contract under the capital lease method? (check all that apply)

The IRS requires capital lease method for tax purposes for this contract

The lease runs for 2 years on a truck that is expected to have a 6 year life

The present value of the lease payments is $89,000. The truck could be bought today for $100,000 cash.

Ownership stays with the less or at the end of the lease

The lessee can buy the truck at its current market value at the end of the lease

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Financial Accounting: Which of these contractual terms would lead a company to
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