Which of the following is False?

1In a sales type lease, if a Lessor's estimate of the unguaranteed residual value of a leased asset has increased, the present value of the change in the residual value is accounted for as a gain in the year of the change 2In a direct financing lease the lessor will defer any profit on the sale and recognize it over the life of the lease. 3In a sales type lease involving Bargain Purchase Option (BPO) the amount of the BPO is considered to be part of the lease payments. 4In a sales type lease involving guaranteed residual value, the full guaranteed residual value is considered to be part of the lease payments for testing for financing vs operating lease classification. 5 Initial direct costs incurred by the lessee are included in the cost of the right-of-use asset but not recorded as part of the lease liability.