For lessors of sales-type leases, cost of goods sold is equal to the carrying value of the leased asset less the present value of any unguaranteed residual asset plus any deferred initial direct costs paid by the lessor.

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Cost of goods sold for sales-type leases is the carrying value of the leased asset less the present value of any unguaranteed residual asset plus any deferred initial direct costs paid by the lessor.

For Lessors of Sales-Type Leases, Cost of Goods Sold Is