A lessee would treat guaranteed residual value as an additional lease payment that will be paid in property or cash, or both, at the end of the lease term.

Question

Quizplus · Accepted Answer

A guaranteed residual value is considered by the lessee as part of the total lease payments, as it represents an amount that the lessee guarantees to make the leased asset worth at the end of the lease term, either through additional payments in cash or property, or both.

A Lessee Would Treat Guaranteed Residual Value as an Additional