Which statement describes how Springsteen will derecognize the lease if Springsteen chooses to pay the BPO?
1) The lease liability will continue to be recognized until the end of the ROU asset's life.
2) No gain or loss is recorded on derecognition of the lease.
3) The ROU asset will remain on Springsteen's records and be increased to its FV when the lease is derecognized.
4) Springsteen will record a gain or loss equal to the difference between the carrying value of the ROU asset and the BPO amount.