EXERCISE 31 Sales-type leases and direct financing leases are two common types of leases from a lessors
Question:
EXERCISE 3–1 Sales-type leases and direct financing leases are two common types of leases from a lessor’s perspective.
Required:
Compare and contrast a sales-type lease with a direct-financing lease on the following dimensions:
a. Gross investment in the lease.
b. Amortization of unearned interest income.
c. Manufacturer’s or dealer’s profit.
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