29. Lessor with a sales-type lease involving an unguaranteed residual value at the end of the lease term will report sales revenue in the period of inception of the lease at which of the following amounts? a. The lease payments plus the unguaranteed residual value. b. The sales price less the present value of the residual value. c. The cost of the asset to the lessor, less the present value of any unguaranteed residual value. d. The present value of the lease payments plus the present value of the unguaranteed residual value.
29. Lessor with a sales-type lease involving an unguaranteed residual value at the end of the lease term will report sales revenue in the period of inception of the lease at which of the following amounts? a. The lease payments plus the unguaranteed residual value. b. The sales price less the present value of the residual value. c. The cost of the asset to the lessor, less the present value of any unguaranteed residual value. d. The present value of the lease payments plus the present value of the unguaranteed residual value.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:29. Lessor with a sales-type lease involving an unguaranteed residual value at the
end of the lease term will report sales revenue in the period of inception of the lease
at which of the following amounts?
a. The lease payments plus the unguaranteed residual value.
b. The sales price less the present value of the residual value.
c. The cost of the asset to the lessor, less the present value of any unguaranteed
residual value.
d. The present value of the lease payments plus the present value of the
unguaranteed residual value.
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