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e) Suppose the leased asset had a shorter economic life of 8 years, the lease agreement was only for 5 years, and the residual value
e) Suppose the leased asset had a shorter economic life of 8 years, the lease agreement was only for 5 years, and the residual value of $12,000 guaranteed by Money, Inc. remained the same. Would the rate of return required to amortize the net lease receivable to zero increase, decrease, or stay the same? Explain. f) Suppose, instead of Money, Inc., Jabari guarantees the residual value itself. How would this affect the classification of this lease agreement for both Giannis and Jabari? Describe the impact that any change in classification would have on revenue recognition for Giannis
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