The amount of a lease receivable recorded by the lessor for a direct finance lease should equal at the beginning of the lease term:

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Quizplus · Accepted Answer

According to FASB ASC 842-30-30-2, for a direct finance lease, the lease receivable should be recorded at the aggregate of the present value of the minimum lease payments and the present value of any unguaranteed residual value expected to accrue to the benefit of the lessor at the end of the lease term. Additionally, any initial direct costs should also be included in the lease receivable. Therefore, option B is correct. Option A includes executory payments, which are not included in the calculation of lease receivable for a direct finance lease. Option C includes the present value of the total lease payments, which is not appropriate as it includes the guarantee of the residual value, which is not a characteristic of a direct finance lease. Option D includes the present value of any guaranteed residual value, which is not appropriate for a direct finance lease as it only includes the present value of unguaranteed residual value.

The Amount of a Lease Receivable Recorded by the Lessor