Answer:
d) Sales-type lease.
Step-by-step explanation:
A bargain purchase option is a non-cancelable lease that contains an option to purchase a leased asset at a price that is sufficiently lower than the asset's expected fair value so that the exercise of the option appears reasonably certain.
Hence, the fair value of the asset exceeds the lessor's cost of the asset. Therefore, the lease will be accounted for by the lessor as Sales-type lease.
A Sales-type lease is a type of capital lease that doesn't meet the criteria to be classified as operating and the lessor makes both interest income and a loss or profit on the transaction, thus causing the fair market value of the leased asset to exceed the lessor's cost to purchase the leased asset.
Additionally, in a sales-type lease, the lessor should ensure net investment, impairment, variable lease payment, interest income are accounted for before the commencement date of the lease.