Question
Which of the following IS an example of a bargain purchase option in a lease? A. JJ Ltd leases a car for 4 years for
Which of the following IS an example of a bargain purchase option in a lease?
A. | JJ Ltd leases a car for 4 years for $800 per month, with an option at the end of the four-year contract to purchase the car for $4,000, which is its estimated fair value in four years time. | |
B. | JJ Ltd leases computers for 3 years for $450 per month, and at the end of the three-year lease, ownership will be transferred to JJ Ltd. | |
C. | JJ Ltd leases printers for 2 years for $350 per month, with a guaranteed residual value included in the lease agreement of $1,400. | |
D. | JJ Ltd leases office furniture for 2 years for $300 per month, with an option to purchase the furniture for $50 at the end of the two-year lease. The estimated fair value of the furniture in two years time is $500. |
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