A lease that gives the lessee the option to purchase the asset at its fair market value at the termination of the lease is called a:
A)fair market value cap lease.
B)fair market value lease.
C)$1.00 out lease.
D)fixed price lease.
E)synthetic lease.

Question

Quizplus · Accepted Answer

A fair market value lease gives the lessee the option to purchase the asset at its fair market value at the termination of the lease. The other options (A, C, D, E) do not adequately describe this type of lease.

A Lease That Gives the Lessee the Option to Purchase