Under the pre-2019 accounting standards, which of the following is not a condition requiring the use of the capital lease reporting method? a. the lease, by its terms, automatically transfers ownership of the leased asset from the lessor to the lessee at the termination of the lease. b. the lease term is at least 75% of the economic useful life of the leased asset c. the lease, by its terms, does not automatically transfer ownership of the leased asset from the lessor to the lessee at the termination of the lease. d. the lease provides that the lessee can purchase the leased asset for a nominal amount (bargain purchase price) at the termination of the lease. e. none of the above.

Lavage rapide is a canadian company that owns and operates a large automatic car wash facility near montreal. the following table provides data concerning the company’s costs: fixed cost per month cost per car washed cleaning supplies $ 0.70 electricity $ 1,400 $ 0.07 maintenance $ 0.15 wages and salaries $ 4,900 $ 0.30 depreciation $ 8,300 rent $ 1,900 administrative expenses $ 1,400 $ 0.03 for example, electricity costs are $1,400 per month plus $0.07 per car washed. the company expects to wash 8,000 cars in august and to collect an average of $6.50 per car washed. the actual operating results for august appear below. lavage rapide income statement for the month ended august 31 actual cars washed 8,100 revenue $ 54,100 expenses: cleaning supplies 6,100 electricity 1,930 maintenance 1,440 wages and salaries 7,660 depreciation 8,300 rent 2,100 administrative expenses 1,540 total expense 29,070 net operating income $ 25,030 required: calculate the company's revenue and spending variances for august.