For the Lessor, Under a Sales-Type Lease, the Excess of the Normal

question 149

Multiple Choice

For the lessor, under a sales-type lease, the excess of the normal sales price (i.e., current market) of the leased asset over its cost (or carrying amount) should be recognized as revenue by the lessor:

• A)in equal amounts during the lease term.
• B)in decreasing amounts during the lease term.
• C)in full at the inception date of the lease.
• D)in increasing amounts during the lease term.

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