Any operating or executory costs should be excluded from the calculation of the minimum lease payments.

Question

Quizplus · Accepted Answer

Operating or executory costs such as maintenance and insurance are typically excluded from the calculation of minimum lease payments, but the question's phrasing suggests excluding all operating costs, which is incorrect. Minimum lease payments should include rental payments, guaranteed residual value, purchase option price if reasonably certain to be exercised, and penalty for failure to renew or extend the lease, excluding executory costs.

Any Operating or Executory Costs Should Be Excluded from the Calculation