Financial Accounting 2

The lease liability includes all of the following, except a. Residual value guaranteed of the lessee b. Periodic rentals c. Exercise price of a purchase option that is not reasonably certain to be exercised d. Termination penalty if the lease term reflects the termination option The lessee's lease liability for a finance lease would be periodically reduced by a. Lease payment b. Lease payment less the portion allocable to the interest c. Lease payment less the depreciation of the asset d. Lease payment plus the depreciation of the asset