At the inception of a capital lease, the guaranteed residual value should be a. Included as part of minimum lease payments at present value. b. Included as part of minimum lease payments at future value. c. Included as part of minimum lease payments only to the extent that guaranteed residual value is expected to exceed estimated residual value. d. Excluded from minimum lease payments.
At the inception of a capital lease, the guaranteed residual value should be a. Included as part of minimum lease payments at present value. b. Included as part of minimum lease payments at future value. c. Included as part of minimum lease payments only to the extent that guaranteed residual value is expected to exceed estimated residual value. d. Excluded from minimum lease payments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the inception of a capital lease, the guaranteed residual value should be
a. Included as part of minimum lease payments at present value.
b. Included as part of minimum lease payments at future value.
c. Included as part of minimum lease payments only to the extent that guaranteed residual value is expected
to exceed estimated residual value.
d. Excluded from minimum lease payments.
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