A lease is classified as a finance (capital) lease when:
✓ Correct Answer: Option B
Finance lease criteria: ownership transfer, bargain purchase option, lease term ≥ major part of economic life, PV of payments ≥ substantially all fair value.
Finance lease criteria: ownership transfer, bargain purchase option, lease term ≥ major part of economic life, PV of payments ≥ substantially all fair value.