How Does a Sales-Type Lease Differ from a Direct Financing

question 157

Multiple Choice

How does a sales-type lease differ from a direct financing lease?

• A)The lessor depreciates the property over a longer period under a sales-type lease.
• B)The lessor uses a higher interest rate on a sales-type lease than on a direct financing lease.
• C)The lessor receives less interest than on a direct financing lease.
• D)The lessor receives a manufacturer's or dealer's profit.

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