Minimum lease payments include:
A) any bargain purchase option amount.
B) any rentals paid to reimburse the lessor for executory costs.
C) contingent rentals.
D) unguaranteed residuals.

Question

Quizplus · Accepted Answer

Minimum lease payments include any bargain purchase option amount because this is a potential future payment that the lessee is reasonably certain to make in order to purchase the leased asset at a price significantly below its expected fair value at the date the option becomes exercisable.

Minimum Lease Payments Include