Minimum lease payments exclude:
A)reimbursement for service costs and taxes paid by the lessor
B)contingent rent
C)a guaranteed residual value
D)both A and B

Question

Quizplus · Accepted Answer

Minimum lease payments should only include fixed payments, and not contingent payments or reimbursements for service costs and taxes. Guaranteed residual value also needs to be excluded as it is not a fixed payment, but rather an estimated value at the end of the lease agreement. Therefore, both choice A and B are correct.

Minimum Lease Payments Exclude