When selling an automobile, TESLA makes the following ?Resale Value Guarantee?, please see the attached Poster.

QUESTION

A. (4) From an accounting perspective, under what conditions, if any, would a ?sale?

with an agreement to repurchase the product at a later date at an agreed upon price

be considered as a ?lease?, rather than as a ?sale?? (Keep in mind that Tesla

Motors would potentially be a ?lessor? for this transaction.)

B. (3) Does the expected value of the vehicle at the time of repurchase, in comparison

to the ?guaranteed resale value?, matter with regard to the accounting?

C. (3) Does Tesla Motors record such transactions as ?sales? or as ?leases?? If they

record the transaction as a ?lease? is it a ?sales-type? lease, ?direct financing?

lease?, or ?operating lease??

Note: Your total answer to the above questions should not exceed one page. Recall that

if you would like to do any research of the accounting literature, only use resources from

theAccounting Standards Codification.