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Initial Direct Costs
Expenses directly associated with acquiring or initiating a lease, which can include commissions, legal fees, and other incremental costs.
Unearned Interest Revenue-Leases
Revenue recognized from leasing transactions which has been collected but not yet earned, typically because the service period has not been completed.
Sales-type Lease
A lease agreement in which the lessor effectively transfers ownership and all risks and rewards of the asset to the lessee, resulting in immediate profit recognition.
Guaranteed Residual Value
The pre-determined value at which a leased asset is guaranteed to be worth at the end of the lease term, important for lease agreements.
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