A provision of a lease that will allow for the purchase of leased assets in the future by the person leasing it (lessee) and it at a set price that is usually so low that the lessee is almost guaranteed to use this option.
Related information about bargain purchase option:
- Bargain Purchase Option Definition | Investopedia
The bargain purchase option is one of four criteria, any one of which, if satisfied, would require the lease to be classified as a capital or financing lease that must ...
- What is bargain purchase option? - BusinessDictionary.com
Definition of bargain purchase option: Stipulation in a lease agreement that gives a lessee the right to purchase the leased asset at the end of the lease term, ...
- bargain purchase option - Financial Dictionary - The Free Dictionary
A lease in which the lessee has the option to buy the underlying asset at less than its fair market value at the end of the lease. For example, one may enter into ...
- Residual Value and Bargain Purchase Options
In a bargain purchase option the lessee has the option to purchase the property at the ... increased by the present value of the bargain purchase option price.
- What is bargain purchase option? - InvestorWords.com
Definition of bargain purchase option: A provision of a lease that will allow for the purchase of leased assets in the future by the person leasing it (lessee) and it ...
- What is BARGAIN PURCHASE OPTION? - The Law Dictionary
Definition of BARGAIN PURCHASE OPTION: When a leasee can buy the asset leased at the end of the term. The price is lowver than fair market value.
- Multiple Choice Quiz - The McGraw-Hill Companies
A), There must be no bargain purchase option. ... If a capital lease contains a bargain purchase option, the lessee should depreciate the leased asset: ...
- Lessee Entries with Bargain-Purchase Option (Spreadsheet ...
Bargain-purchase option price at end of lease term € 4,000.00. Lease term 5 years. Economic life of leased equipment 10 years. Lessor's cost €65,000.00 ...