When there is a bargain purchase option, the leased asset will be depreciated over the life of the lease instead of the life of the asset.

Name: When there is a bargain purchase option, the leased asset will be depreciated over the life of the lease instead of the life of the asset.
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Quizplus · Accepted Answer

When there is a bargain purchase option, the leased asset is typically depreciated over the useful life of the asset, not the lease term, because it is expected that the lessee will exercise the option and own the asset.

When There Is a Bargain Purchase Option, the Leased Asset