* E15-37 Concepts; terminology Listed below are several terms and phrases associated with leas itern from List B (by letter) that is most appropriately associated with Sated with lease Plechtem from List AW list A with the List B List A 1. Effective rate times balance a. PV of purchase option exercise price. - 2. Revenue recognition issues b. Lessor's net investment. 3. Lease payments plus c. Lessor's gross investment. residual value d. Operating lease. 4. Periodic lease payments plus excess e. Depreciable assets. lessee-guaranteed residual value f. Component of lease payments. 5. PV of lease payments plus g. Nonlease payments. PV of residual value h. Amortization longer than lease term. 6. Initial direct costs i. Disclosure only. 7. Rent revenue j. Interest expense. 8. Purchase option k. Control passed to lessee. 9. Leasehold improvements 1. Lessee's lease payments 10. Cash expected to satisfy m. Might shorten lease term residual value guarantee n. Sales-type lease selling expense. 11. Payments expensed by the lessee - 12. Deducted in lessor's computation of lease payments 13. Title transfers to lessee 14. Contingent rentals