Which of the following accurately summarizes a capital lease?

A capital lease, also known as a finance lease, is characterized by its long-term nature and the financial benefits that usually include the transfer of ownership or the option to purchase the asset at the end of the lease term. This type of lease typically allows the lessee to treat the leased asset as if it were owned, thereby enabling them to capitalize on depreciation and interest benefits on their financial statements.

The key elements that define a capital lease include:

1. An ownership transfer at the end of the lease term.

2. A bargain purchase option that allows the lessee to buy the asset at a price significantly lower than its fair market value at the end of the lease.

3. The lease term that is at least 75% of the asset's useful life.

4. Present value of the lease payments that is at least 90% of the fair market value of the leased asset.

These features differentiate capital leases from operating leases, which are usually shorter-term arrangements focused on rental without the associated economic benefits of ownership. The other options do not capture the essence of what constitutes a capital lease.