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19 April, 07:27

The lease receivable amount includes the present value of

a. rental payments only.

b. rental payments plus the present value of the guaranteed residual value only.

c. rental payments plus the present value of guaranteed and unguaranteed residual values.

d. rental payments plus the present value of the unguaranteed residual value only.

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Answers (1)
  1. 19 April, 07:31
    0
    Answer is C.

    Explanation:

    It must be understood that both guaranteed and unguaranteed residual values are both examples of residual value.

    The guaranteed residual value is known to be an additional contribution or payment made by somebody considered to be a lesse, which may be in cash, property or both when a lease terminates.

    The unguaranteed residual value is considered to be the worth of a lease property, which will be valued at the end of the agreement's term, and it not the responsibility of the lesse.
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