Define the bargain purchase option, Financial Accounting

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Define the bargain purchase option

Response to the following questions:

1. Define the following terms: (a) lease, (b) sales-type lease, (c) direct financing lease, (d) sale-leaseback transaction, (e) operating lease, (f) leveraged lease

2. Define the following terms: (a) inception of lease, (b) bargain purchase option, (c) unguaranteed residual value, (d) implicit interest rate, (e) initial direct costs.

If possible, please give examples to better understand your response.

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Financial Accounting: Define the bargain purchase option

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