Final answer:
The statement is false because for a capital lease with a bargain purchase option, the lessee should depreciate the capitalized asset over its economic life, considering the intent to obtain ownership through the bargain purchase option.
Step-by-step explanation:
The statement is false. When dealing with a capital lease that includes a bargain purchase option, the lessee should depreciate the capitalized asset based on the economic life of the asset, not merely the lease term. This is because the bargain purchase option indicates the intent and likely possibility that the lessee will obtain ownership of the asset at the end of the lease term. Therefore, the asset should be treated as a purchased asset for the purpose of depreciation.
In accounting, this treatment reflects the fact that the lessee will gain the benefits of the asset beyond the lease term due to the bargain purchase option enabling them to acquire the asset at a price significantly lower than its expected fair market value at the date the option becomes exercisable.