A lease where ownership of the asset transfers to the lessee at the end of the lease for a nominal cost is called a:
A)fair market value cap lease.
B)fixed price lease.
C)$1.00 out lease.
D)fair market value lease.

Question

Quizplus · Accepted Answer

A $1.00 out lease, also known as a dollar buyout lease, allows the lessee to purchase the asset for a nominal cost of $1. This means that ownership of the asset transfers to the lessee at the end of the lease term, making it a type of capital lease.

A Lease Where Ownership of the Asset Transfers to the Lessee