For a finance lease, the amount initially capitalized by the lessee is the sum of the future value of the periodic lease payments, plus the future value of any bargain purchase option.

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For a finance lease, the amount initially capitalized by the lessee is the present value of the future lease payments, not the future value. This includes the present value of any bargain purchase option.

For a Finance Lease, the Amount Initially Capitalized by the Lessee