For the Lessor,under a Sales-Type Lease,the Excess of the Normal

question 207

Multiple Choice

For the lessor,under a sales-type lease,the excess of the normal sales price (i.e.,current market) of the leased asset over its cost (or carrying amount) should be recognized as revenue by the lessor:

• A) in decreasing amounts during the lease term.
• B) in increasing amounts during the lease term.
• C) in equal amounts during the lease term.
• D) in full at the inception date of the lease.

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Definitions:

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