How Does a Sales-Type Lease Differ from a Direct-Finance Lease

question 50

Multiple Choice

How does a sales-type lease differ from a direct-finance lease?

• A) The lessor depreciates the property over a longer period under a sales-type lease.
• B) The lessor uses a higher interest rate on a sales-type lease than on a direct-finance lease.
• C) The lessor receives less interest than on a direct-finance lease.
• D) The lessor receives a manufacturer's or dealer's profit.

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