A Lessor with a Sales-Type Lease Involving an Unguaranteed Residual

question 78

Multiple Choice

A lessor with a sales-type lease involving an unguaranteed residual value available to the lessor at the end of the lease term will report sales revenue in the period of inception of the lease at which of the following amounts?

• A)The minimum lease payments plus the unguaranteed residual value.
• B)The present value of the minimum lease payments.
• C)The cost of the asset to the lessor, less the present value of any unguaranteed residual value.
• D)The present value of the minimum lease payments less the present value of the unguaranteed residual value.

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Definitions:

Cultural Differences

The variations in the practices, customs, and behaviors of different societies or cultures.

Language Barriers

Communication obstacles that arise due to differences in language, affecting understanding and interaction between individuals.

Single-Strand

A single piece or element of something, often referring to a simple, unifaceted aspect of a larger issue or structure.

Grapevine

Informal communication channels within an organization, through which information and rumors circulate beyond official communication paths.