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

question 69

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 assured is called a:

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