The term usually used to describe the situation where a lessee has an option to purchase the leased property at a price that is sufficiently lower than its fair market value so that the exercise of the option appears reasonably assured is:
A)bargain renewal option.
B)assured purchase option.
C)bargain purchase option.
D)bargain buy-out option.

Question

Quizplus · Accepted Answer

A bargain purchase option is a lease provision allowing the lessee to purchase the leased asset at the end of the lease term at a price significantly lower than the expected fair market value, making it likely the option will be exercised.

The Term Usually Used to Describe the Situation Where a Lessee