Sales-Type Lease vs. Finance Lease

[archived_user]

Could someone please verify if I have the relationship down correctly?
Classifying a Lease:
Step 1: (I’m excluding the 3 other criteria for now ..)

• If NPV of Lease payments > 90% FMV –> Finance or Sales-Type Lease

Step 2:

• NPV of Lease payments > Carrying Value –> Sales-Type Lease
• NPV of Lease payments = Carrying Value –> Finance Lease
• If Lessor is manufacturer –> Sales-Type Lease