Who assumes the risk of a leased asset's salvage value?
A) Neither the lessee nor the lessor assumes this type of risk since the salvage value is known with certainty
B) The lessee
C) The lessor
D) The lessee and the lessor share the risk equally

Question

Quizplus · Accepted Answer

The lessor assumes the risk of a leased asset's salvage value because they retain ownership of the asset and are responsible for its residual value at the end of the lease term.

Who Assumes the Risk of a Leased Asset's Salvage Value