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A noncancellable lease contains a bargain purchase option. The fair value of the asset is...

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Accounting

A noncancellable lease contains a bargain purchase option. The fair value of the asset is greater than the lessor's cost. Collectability of the lease payments is reasonably assured, and no material uncertainties about future costs exist. How will the lessor account for the lease?

A. guaranteed lease

B. sales-type lease

C. operating lease

D. direct financing lease

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