The Lessee's Option to Purchase a Leased Asset at a Price

question 248

Multiple Choice

The lessee's option to purchase a leased asset at a price that is sufficiently lower than the asset's expected fair value so that the exercise of the option appears reasonably certain sometimes is called a:

• A) Bargain purchase option.
• B) Lessee buy-out option.
• C) Lessor sell-out option.
• D) Guaranteed purchase option.

---

Definitions:

Earth's Crust

The outermost solid shell of a rocky planet, dwarf planet, or natural satellite, which is chemically distinct from the underlying mantle.

Chattel

Personal property which is movable, as opposed to real property or real estate.

Firmly Attached

Pertains to property or equipment that is fixed or securely fastened to a location or structure, often impacting legal status or taxation.

Joint Tenancy

A form of co-ownership where two or more persons hold equal shares of a property with rights of survivorship, meaning when one owner dies, their share automatically passes to the remaining owner(s).