Which of the Following Statements Regarding a Lessee-Guaranteed Residual Value

question 140

Multiple Choice

Which of the following statements regarding a lessee-guaranteed residual value is true?

• A) The lessor's lease receivable should be increased by the amount of the residual value.
• B) The lessor's lease receivable should be increased by the amount of the residual value to the extent that guaranteed residual value is expected to exceed estimated residual value.
• C) The lessee's right-of-use asset and lease payable at the beginning of the lease should be increased by the present value of the residual value.
• D) The lessee's right-of-use asset and lease payable at the beginning of the lease should be decreased by the present value of the residual value to the extent that guaranteed residual value is expected to exceed estimated residual value.

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