In accounting for a finance lease,

if it is probable that the expected residual value is less than the guaranteed residual value, include the difference between the expected and guaranteed residual values in the Lease Liability account and in the Right$-$of$-$Use Asset account.

include the present value of a guaranteed residual in the calculation of the Lease Liability account.

include the present value of an unguaranteed residual in the calculation of the Right$-$of$-$Use asset account.

include the expected residual value is equal to or greater than the guaranteed residual value in the Lease Liability account and in the Right$-$of$-$Use Asset account.