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

question 32

Multiple Choice

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

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