USA Conditional Sales Contract used to finace asset acquition

[DPS]

I am evaluating an agreement that involves the financing of some vehicles. The agreement is a Conditional Sales Contract where the agreement is described as a sale and debt arrangement but bank "retains" title as security that will be then released upon final payment of the last installment.

The question is if it should be recorded as an asset purchase and debt or as a capital lease?

 

[kirby]

No lease language. So record as asset purchase and debt.