When a finance lease has a guaranteed residual, the lessee will recognize Multiple choice question. neither a gain nor a loss when it transfers the residual to the lessor at the end of the lease. a gain if the fair value of the residual at the end of the lease is greater than the guaranteed amount. a gain if it has to pay cash to the lessor because of the guaranteed value. a loss if the fair value of the residual at the end of the lease is less than the guaranteed amount.

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