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Based solely upon the following sets of circumstances indicated below, which set gives rise to a sales-type or direct-financing lease of a lessor?

Based solely upon the following sets of circumstances indicated below, which set gives rise to a sales-type or direct-financing lease of a lessor? Transfers Ownership Contains Bargain Collectibility of Lease Any Important By End Of Lease? Purchase Option? Payments Assured? Uncertainties? A. No Yes Yes No b. Yes No No No c. Yes No No Yes d. No Yes Yes Yes Which of the following would not be included in the Lease Receivable account? A. Guaranteed residual value b. Unguaranteed residual value c. A bargain purchase option d. All would be included In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned income a. should be amortized over the period of the lease using the interest method. B. should be amortized over the period of the lease using the straight-line method. C. does not arise. D. should be recognized at the lease”s expiration.







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