If a Leased Asset Has Maintenance Offered as an Included

question 21

Multiple Choice

If a leased asset has maintenance offered as an included extra, such an extra would be evaluated differently from other leasing cash flows in this way.

• A)Maintenance would be estimated over shorter time intervals than the lease
• B)Maintenance would represent an extra cost to the lessee
• C)Maintenance would be discounted at a higher discount rate to reflect risk, and represent a cash inflow for lessee
• D)Maintenance would all be paid up front