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On March 1 of the current year, Stafford Corporation leased equipment under a six-year noncancellable...

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Accounting

On March 1 of the current year, Stafford Corporation leased equipment under a six-year noncancellable lease. The estimated economic of the equipment is nine years. The fair value of the equipment is $750,000. The lease does not contain a bargain purchase option or a transfer of title. Stafford must classify this lease as a capital lease if the present value of the minimum lease payments is at least ________. A. $675,000 B. $750,000 C. $562,500 D. $500,000

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