How Is an Unguaranteed Residual Value Accounted for by the Lessee

question 89

Multiple Choice

How is an unguaranteed residual value accounted for by the lessee when computing minimum lease payments?

• A) The present value of the guaranteed residual value is added in to determine the minimum lease payments.
• B) It is ignored.
• C) The future value of the guaranteed residual value is added in to determine the minimum lease payments.
• D) The excess of guaranteed residual value over estimated residual value is added in by the lessee to determine the minimum lease payments.

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