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Does entity a have the right to direct use of the asset

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Problem 1: Entity A (customer) enters into a contract with Entity B (supplier) for the use of a data processing equipment. According to the contract, Entity A shall operate the equipment only in accordance with the standard operating procedures stated in the accompanying use r's manual. In assessing the existence of a lease, does Entity A have the right to direct the use of the asset?

a. No, because the asset's use is restricted.
b. Yes, because Entity A has the right to direct how and for what purpose the asset is used.
c. Yes, because the asset's use is predetermined and Entity B is precluded from changing that predetermined use.
d. Maybe yes, maybe no, but exactly don't know.

 

Reference no: EM132956371

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