The basic difference between a direct-financing lease and a sales-type lease is the recognition of the profit on the sale. allocation of initial direct costs by the lessor to periods benefited by the lease arrangements. manner in which rental receipts are recorded as rental income. amount of the depreciation recorded each year by the lessor.
The basic difference between a direct-financing lease and a sales-type lease is the recognition of the profit on the sale. allocation of initial direct costs by the lessor to periods benefited by the lease arrangements. manner in which rental receipts are recorded as rental income. amount of the depreciation recorded each year by the lessor.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The basic difference between a direct-financing lease and a sales-type lease is the
recognition of the profit on the sale.
allocation of initial direct costs by the lessor to periods benefited by the lease arrangements.
manner in which rental receipts are recorded as rental income.
amount of the depreciation recorded each year by the lessor.
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