The residual value is the estimated fair value of theleased property at the end of the lease term.(a) Of what significance is (1) an unguaranteed and (2) aguaranteed residual value in the lessee’s accountingfor a capitalized-lease transaction?(b) Of what significance is (1) an unguaranteed and (2) aguaranteed residual value in the lessor’s accountingfor a direct-financing lease transaction?
The residual value is the estimated fair value of the
leased property at the end of the lease term.
(a) Of what significance is (1) an unguaranteed and (2) a
guaranteed residual value in the lessee’s accounting
for a capitalized-lease transaction?
(b) Of what significance is (1) an unguaranteed and (2) a
guaranteed residual value in the lessor’s accounting
for a direct-financing lease transaction?
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