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If it is reasonably certain that the expected residual value is less than the guaranteed...

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Accounting

If it is reasonably certain that the expected residual value is less than the guaranteed residual value,

Select one:

a. the whole guaranteed residual value should be ignored in the computation of the lease liability.

b. the difference between the expected and guaranteed residual values should not be included in computation of the lease liability.

c. the difference between the expected and guaranteed residual values should be included in computation of the lease liability by the lessee.

d. the lessor recognizes more gross profit on a sales-type lease with a guaranteed residual value than on a sales-type lease with an unguaranteed

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