When Lessors Account for Residual Values Related to Leased Assets

question 30

Multiple Choice

When lessors account for residual values related to leased assets, they

• A)always include the residual value because they always assume the residual value will be realized.
• B)include the unguaranteed residual value in sales revenue.
• C)recognize more gross profit on a sales-type lease with a guaranteed residual value than on a sales-type lease with an unguaranteed residual value.
• D)All of these answer choices are true with regard to lessors and residual values.

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