Which One of the Following Is an Indicator That a Lease

Which one of the following is an indicator that a lease is an operating lease for accounting purposes?

A) The lease transfers ownership of the asset to the lessee by the end of the lease term.
B) The lessee will probably exercise the option to purchase the leased asset.
C) The lease term represents a minor portion of the leased asset's economic life.
D) The residual value plus the present value of the lease payments exceeds the value of the leased asset.
E) The lessor has no use for the asset other than to lease it to the present lessee due to the specialized nature of that asset.

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