Evaluate the following features or comments and decide if the description would pertain to a capital lease or an operating lease.

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The lessee reports the leased asset on its balance sheet Payments are reported fully as rent expense Ownership of the proper- ty passes to the lessee by the end of the lease term The lease term is at least 75% of the remaining life of the property Interest expense is measured and reported by the lessee Depreciation of the leased asset is not reported by the lessee At the inception of the lease, the lessee records both an asset and liability Operating Lease Capital Lease