Which of the Following Statements Regarding a Bargain Purchase Option

question 83

Multiple Choice

Which of the following statements regarding a bargain purchase option is true?

• A) The bargain purchase option is included in the minimum lease payments for the lessee but not the lessor.
• B) The lessee subtracts the present value of the bargain purchase option from the present value of the minimum rental payments to determine the lease obligation.
• C) A bargain purchase option reduces the amount of the investment that the lessor must recover from the minimum lease payments.
• D) The lessor subtracts the present value of the bargain purchase option from the present value of the rental payments to determine the lease receivable.

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