Which Factor Would Contribute Toward the Lessor Classifying a Lease

question 15

Multiple Choice

Which factor would contribute toward the lessor classifying a lease as a financial lease?

• A) Lessor retains risk of breakage to leased asset.
• B) Lessor has reward of high resale value.
• C) Lessor does not have risk of change in demand for the leased asset.
• D) Lessor does not have guaranteed residual value.

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