If a Capital Lease Contains a Bargain Purchase Option, the Depreciation

question 124

Multiple Choice

If a capital lease contains a bargain purchase option, the depreciation period that is used by the lessee for the asset is ________.

• A) the useful life to the lessee
• B) the same period used by the lessor
• C) the lease term
• D) the statutory life for all assets in that class

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