chapter 15leases basic lease classifications a is accounted for as either rental agreement operating or purchase sale accompanied by debt financing the choice of accounting method hinges on nature leasing arrangement nonoperating leases are agreements that we identify being formulated outwardly but which in reality installment purchases classification criteria lessee should classify transaction capital if it includes noncancelable term and one more following four met otherwise an specifies ownership asset transfers to contains bargain option equal 75 expected economic life present value minimum payments greater than 90 fair example january 1 2000 sans serif publishers inc computer services printing firm leased color copier from compudec corporation annual 100 000 beginning inception
