Under ASPE 3065, a lease is classified as a capital lease if any of the following criteria is met: ownership transfer at the end of the lease (including a bargain purchase option), the lease term is 75% or greater of the asset's useful life, or the present value of the minimum lease payments is 90% or greater of the asset's fair value.

• A. Ownership transfer is guaranteed at the end of the lease
• B. The lease term is 50% of the asset's useful life
• C. The PV of minimum lease payments is 85% of fair value
• D. The PV of minimum lease payments is 90% or greater of fair value

Answer: (D)