USA Question Regarding $1 lease to own

[Hong123]

Let suppose I have a land that's worth $150000 with a $5000 monthly payment (broken down to 30 months) to lease. At the end of the lease, I have the option to purchase the land for $1. In this case will I consider $1 as the purchase price of the land and the asset to be valued at $1 or will I considered the fact that the 30 months $5000 monthly payment as a 150k loan and then I purchased the land at the end for $1, making the total purchase price to be $150001?

Thanks

 

[Drmdcpa]

This is a capital lease not an operating lease. A capital lease is viewed as a form of financing.