1. Under a finance lease, how is the lessees cost (i.e., the initial Lease Payable account) computed:
   1. When there is no bargain purchase option or residual value?

2. When there is a bargain purchase option?

3. When there is no bargain purchase option but there is a guaranteed residual value?

4. When there is no bargain purchase option but there is an unguaranteed residual value?

5. Which discount rate does the lessee use in computing the lessees cost (Lease payable)the lessors implicit rate or the lessees incremental borrowing rate? Why? Any exceptions?

I use Intermediate acct. 10 e by spiceland.