What is bargain purchase option?
An option to buy the leased asset at a price (e.g., $1) so favorable that exercise is reasonably certain, one of the ASC 842 tests that makes a lease a finance lease.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.