How does a lessee account for an unguaranteed residual value on a capital lease? The lessee includes
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How does a lessee account for an unguaranteed residual value on a capital lease?
The lessee includes the unguaranteed residual value in the calculation of the minimum lease payments.
The lessee ignores an unguaranteed residual and does not include it in any present value calculations.
The treatment of unguaranteed residual values for the lessee depends on if the lease is a general or sales-type capital lease.
The lessee includes it in the present value in the computations of the lease receivable
Related Book For
Financial Accounting Theory and Analysis Text and Cases
ISBN: 978-1118582794
11th edition
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack Cathey
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