Final answer:
The correct option for a portion of the lease payments to be applied to the purchase price if the option is exercised is A) Apply lease payments.
Step-by-step explanation:
The subject of this question is Business and it is at a College level.
The correct option for a portion of the lease payments to be applied to the purchase price if the option is exercised is A) Apply lease payments.
When a lease includes an option to purchase, a portion of the lease payments can be applied towards the purchase price. This allows the lessee to gradually accumulate equity in the asset being leased.