Use the following information to decide whether this equipment lease qualifies as an operating, sales-type, or direct financing lease to a lessor.
a. • There is no transfer of ownership at the end of the lease term.
• There is no bargain purchase option.
• The lease term is 60% of the economic life of the leased property.
• The present value of lease payments, including a residual value guaranteed by the lessee, is 100% of the fair value of the leased property to the lessor.
• The collectability of the lease payments is reasonably assured.
• The leased asset was not of a specialized nature.
b. Same as (a), except that the residual value is guaranteed by a third party, not the lessee. The present value of the residual value guarantee is 15% of the fair value of the leased property.
c. Same as (a), except that:
• The present value of the lease payments, including a residual value guaranteed by the lessee, is only 50% of the fair value of the leased asset.
• The collectability of the minimum lease payments is not predictable.