Under a sales-type capital lease, a dealer's profit is measured as the difference between the property's fair value and its carrying value.

Name: Under a sales-type capital lease, a dealer's profit is measured as the difference between the property's fair value and its carrying value.
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In a sales-type capital lease, the dealer's profit is recognized as the difference between the fair value of the leased asset and its carrying value (cost) at the inception of the lease.

Under a Sales-Type Capital Lease, a Dealer's Profit Is Measured