USA Leases not meeting capitalization thresholds.

[PJW]

Leasing equipment that has a present value at lease inception of $5,000.
Lease meets at least 1 of the 4 criteria to be considered a capital lease.
Company's capitalization threshold is $10,000.

Would this lease be consider a capital lease regardless of the company's capitalization threshold or would it be considered an operating lease because it does not meet the threshold?

Thank you in advance for any insight!

 

[kirby]

If you purchased an asset, you would follow the fixed asset capitalization rules. You did not do so. You contracted for a lease so you follow lease acctg rules.