When the lessee guarantees an estimated residual value of $75,000,the amount the lessee records as a leased asset and lease liability is increased by $75,000.

Question

Quizplus · Accepted Answer

The lessee does not increase the leased asset and lease liability by the guaranteed residual value. Instead, the guaranteed residual value affects the calculation of the lease liability and the right-of-use asset, but it is not directly added to them.

When the Lessee Guarantees an Estimated Residual Value of $75,000,the