How should changes in the estimated unguaranteed residual value be handled by the lessor?

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Intermediate Accounting

ISBN: 978-0470423684

13th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

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Question Posted: Dec 24, 2010 05:28 AM

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Unguaranteed residual values accrue to the lessor at the expiration of the lease. How are these values treated in a sales-type lease?
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How should changes in the estimated unguaranteed residual value be handled by the lessor?

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If the estimate of the residual value declines the lessor must recognize a loss t...View the full answer

Intermediate Accounting

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