At the inception of a finance lease, the amount of a residual value guarantee is

A.

Included as part of lease payments for the entire amount of the guaranteed residual value.

B.

Included as part of lease payments only to the extent that the guaranteed residual value is likely to exceed the leased asset's expected residual value.

C.

Included as part of lease payments only to the extent that the leased asset's expected residual value is likely to exceed the guaranteed residual value.

D.

Excluded from lease payments.