JT Engineering recently entered into a $10-$year lease for equipment. The lease requires a semi$-$annual payment of $$15,000.$ This is the

first time JT has leased equipment. In the past, it always used $10-$year installment purchases, which it capitalized. Up to $2018,$ from the

perspective of the IASB, should JT capitalize the lease? Why?

It should capitalize if$-$and only if$-$the contractual rights and obligations of the lease are non$-$cancellable.

It should not capitalize because the assets obtained through the lease are not owned, making capitalization inappropriate.

It should capitalize because the lease is for more than one year, making it a long$-$term lease.

It should capitalize because the lease is similar in economic substance to the installment purchases, which were capitalized.