In a sales-type lease with an unguaranteed residual value, the gross margin recognized by the lessor in the year of inception is:
A) 0 (zero)
B) market value of asset less book value of asset less the present value of the unguaranteed residual value
C) market value of asset less book value of asset less the nominal value of the unguaranteed residual valued.
D) market value of asset less book value of asset
Correct Answer:
Verified
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