Which statement regarding a lessee's finance lease is true?

Select one:

a.

Amortization expense should be computed using the effective method

b.

The capitalized Right of Use asset should include the present value of a bargain purchase option

c.

The annual Amortization Expense will be the annual rental payment less the interest portion of that payment

d.

The annual Amortization Expense will be an increased amount each year.