Under a sales-type lease between affiliated companies, how does the lessor treat the intercompany profit at the inception of the lease?

Question

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In a sales-type lease between affiliated companies, the lessor will generally defer and amortize the intercompany profit over the lessee's period of usage. This is because the purpose of the transaction is not to generate profit, but to transfer the use of the asset to the lessee at a cost that is comparable to alternative financing options. By deferring the profit and recognizing it over the life of the lease, the lessor can achieve this objective while also complying with accounting standards.

Under a Sales-Type Lease Between Affiliated Companies, How Does the Lessor