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At the beginning of a finance lease with a guaranteed residual value the lessee should excluded the guaranteed residual from the calculations included as part

At the beginning of a finance lease with a guaranteed residual value the lessee should

  1. excluded the guaranteed residual from the calculations
  2. included as part of lease payments only to the extent that guaranteed residual value is expected to exceed estimated residual value.
  3. included the guaranteed residual as part of the lease liability at future value
  4. include the guaranteed residual as part of ROU asset at present value

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