Which is NOT a lessee criterion under ASPE 3065 for a lease to be capitalized?

• A. There is a transfer of title at the end of the lease or a bargain purchase option
• B. The lease term is a major portion of the asset’s useful life (usually 75% or more)
• C. The PV of the minimum lease payments equals substantially all of the asset’s fair value (usually 90% or more)
• D. The lease payments are guaranteed by a third party

Answer: (D)