Bargain Purchase Option

Bargain Purchase Option
A bargain purchase option is a provision in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease term for a price significantly lower than the expected fair market value.
Capital Lease
A Capital Lease, in the USA, is a lease that does not legally constitute a purchase but is recorded as an asset on the lessee's books under certain conditions.

Accounting Terms Lexicon

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