If the current "substantially ALL" test related to whether a lease should be considered a capital lease is met then the LESSEE should capitalize the lesser of: The fair market value or the total interest to be paid over the life of the lease. The fair market value or the periodic payment multiplied by the number of payments to be made over the life of the lease. The fair market value or the projected value of the lease at the end of the lease. The fair market value or the present value of the minimum lease payments. Question 9 2pts Q9: We assume a bargain purchase option will be exercised when: The lessee can purchase the asset for a price lower than expected fair market value at the end of the lease. The leased asset is transferred to the lessee at the end of the lease. The fair market value of the leased asset is significantly higher than its book value at the end of the lease. The exercise price is sufficiently lower than the property's expected fair market value at the date the option