16 What impact does a bargain purchase option have on the present value of the minimum lease payments computed by the lessee? Oa. The lessee must decrease the present value of the minimum lease payments by the present value of the option price. Ob. No impact as the option does not enter into the transaction until the end of the lease term The minimum lease payments would be increased by the present value of the option price if, at the time of the lease agreement, it appeared certain that the lessee would exercise the option at the end of the lease and purchase the asset at the option price. Od. The lessee must increase the present value of the minimum lease payments by the present value of the option price. QUESTION 17 Which of the following is a correct statement of one of the capitalization criteria? a. The lease term is equal to or more than 75% of the estimated economic life of the leased property. b. The lease contains a purchase option. c. The minimum lease payments (excluding executory costs) equal or exceed 90% of the fair value of the leased property. d. The lease transfers ownership of the property to the lessor