What is the treatment of an unguaranteed residual value in determining the cost of sales under a sales type lease? A. The unguaranteeed residual value is ignored. B. The unguaranteed residual value is added to the cost the leased asset. C. The unguaranteed residual value is deducted from the cost of the leased asset at absolute amount. D. The unguaranteed residual value is deducted from the cost of the leased asset at present value.
What is the treatment of an unguaranteed residual value in determining the cost of sales under a sales type lease? A. The unguaranteeed residual value is ignored. B. The unguaranteed residual value is added to the cost the leased asset. C. The unguaranteed residual value is deducted from the cost of the leased asset at absolute amount. D. The unguaranteed residual value is deducted from the cost of the leased asset at present value.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter11: Notes, Bonds, And Leases
Section: Chapter Questions
Problem 12Q
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What is the treatment of an unguaranteed residual value in determining the
cost of sales under a sales type lease?
A. The unguaranteeed residual value is ignored.
B. The unguaranteed residual value is added to the cost the leased asset.
C. The unguaranteed residual value is deducted from the cost of the leased asset at absolute amount.
D. The unguaranteed residual value is deducted from the cost of the leased asset at present value.
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