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What impact does a bargain purchase option have on the present value of the lease payments computed by the lessee? The lessee must increase the

What impact does a bargain purchase option have on the present value of the lease payments computed by the lessee?

The lessee must increase the present value of the lease payments by the present value of the option price.

The lease payments would be increased by the option price.

There is no impact as the option does not enter into the transaction until the end of the lease term.

The lessee must decrease the present value of the lease payments by the present value of the option price.

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