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Blossom Services Inc. accounts for the lease of a truck. The lease includes a residual value guarantee at the end of the lease term of

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Blossom Services Inc. accounts for the lease of a truck. The lease includes a residual value guarantee at the end of the lease term of $15,000. Blossom estimates that the likelihood that the residual value will be $15,000 has a 45% certainty. Blossom feels that there is a 25% chance that the residual value will be $11,000 and a 30% chance that it will be $9,000. Calculate the probability-weighted value of the residual guarantee that needs to be included in the measurement of the lease payments liability recorded by Blossom when the lease is signed. Probability weighted expected value

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