The bargain purchase option affects the calculation of the amount to be recovered through the increase in periodic rental payments for the lessor.
A bargain purchase option is an option in order to purchase the asset at a price that is expected to be significantly lower than the actual value of the asset at the date that the option becomes exercisable.
If the lessee has the option to buy the asset at the end of the lease life for an amount significantly below fair market value, then that is considered a bargain purchase option and the lessee should record the lease as a finance lease.
Hence, the bargain purchase option affects the calculation of the amount to be recovered by the lessor.
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