Which Statement Is Correct About the Bargain Purchase Option (BPO)

question 3

Multiple Choice

Which statement is correct about the bargain purchase option (BPO) ?

• A)It is cash that the lessee will receive at the end of the lease.
• B)It cannot be assumed that the BPO will be exercised.
• C)It is excluded in the present value of the lease payment calculation.
• D)It means that it is almost certain that ownership will transfer to the lessee.

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