In instances where there is not an observable standalone selling price, the lessor must use an estimate of the standalone selling price and allocate it based on which of the following methods?
A) adjusted market assessment approach
B) expected-cost-plus-a-margin approach
C) residual approach
D) any of the above approaches

Question

Quizplus · Accepted Answer

The lessor can use any of the three approaches: adjusted market assessment, expected-cost-plus-a-margin, or residual approach to estimate and allocate the standalone selling price when it is not directly observable.

In Instances Where There Is Not an Observable Standalone Selling