The residual value is the estimated fair value of the leased property at the end of the

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The residual value is the estimated fair value of the leased property at the end of the lease term.

(a) Of what significance is (1) an unguaranteed and (2) a guaranteed residual value in the lessee’s accounting for a capitalized-lease transaction?

(b) Of what significance is (1) an unguaranteed and (2) a guaranteed residual value in the lessor’s accounting for a direct-financing lease transaction?

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Intermediate Accounting

ISBN: 978-0470423684

13th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

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Question Posted: Dec 24, 2010 05:28 AM

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The residual value is the estimated fair value of the leased property at the end of the

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a 1 The lessees accounting for a lease with an unguaranteed residual value is the same as the accoun...View the full answer

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