In a lease agreement:
A) the owner of the property is called the lessee.
B) the renter of the property is called the lessor.
C) the presence of a bargain purchase option indicates that it is a capital lease.
D) there is always a transfer of ownership of the leased asset at the end of the lease.

Question

Quizplus · Accepted Answer

A bargain purchase option is a feature of a capital lease, indicating the lessee can purchase the asset at a price significantly lower than its fair market value at the end of the lease term.

In a Lease Agreement