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:

Connective Tissue

Type of animal tissue that binds structures together, provides support and protection, fills spaces, stores fat, and forms blood cells; adipose tissue, cartilage, bone, and blood are types of connective tissue; living cells in a non-living matrix.

Uremia

A condition resulting from the accumulation of waste products in the blood due to kidney failure, leading to various symptoms and health issues.

Nephrons

The functional units of the kidney, responsible for filtering blood and producing urine.

Urea

A waste product formed in the liver, broken down from proteins, and excreted in urine.