In a direct-financing lease, the guaranteed residual value by an unrelated third party is not included while calculating the lease receivable.

Question

Quizplus · Accepted Answer

In a direct-financing lease, the guaranteed residual value, even if guaranteed by an unrelated third party, is included in the calculation of the lease receivable. This is because the lessor expects to recover this amount at the end of the lease term, making it part of the total investment in the lease.

In a Direct-Financing Lease, the Guaranteed Residual Value by an Unrelated