one of the four criteria to be satisfied for a lessee to account for leased property under the CAPITAL LEASE method. A bargain purchase option exists if the lessee can buy the property at the end of the lease for a nominal (minimal) amount or renew at nominal rental payments. If this criterion exists, the leased asset is depreciated by the lessee over the life of the property. The PRESENT VALUE of the bargain purchase option payment is included in obtaining the present value of future payments as the capitalizable amount of the leased asset.