What Amount of Sales Is Recognized by the Lessor in a Sales

question 86

Multiple Choice

What amount of sales is recognized by the lessor in a sales type lease when the residual value is unguaranteed?

• A)Market value of the asset leased.
• B)Cost of asset leased less present value of unguaranteed residual value.
• C)Cost of asset leased.
• D)Market value of asset leased less present value of unguaranteed residual value.

---

Definitions:

Seven Years' War

A global conflict fought between 1756 and 1763, involving most of the great powers of the time and affecting Europe, North America, Central America, the West African coast, India, and the Philippines.

Declaration of Independence

A historic document adopted on July 4, 1776, by the Second Continental Congress, announcing the thirteen American colonies' separation from Great Britain.

Stamp Act Congress

A meeting held in 1765 in New York City by representatives from the American colonies to protest against the British Stamp Act, an early form of organized resistance against British policy.

Taxed Without Consent

The imposition of taxes on individuals or businesses without their agreement or representation, often considered unjust.