At the end of a lease, if the actual residual value exceeds the residual value guaranteed by the lessee, ________.
A) the lessor must compensate the lessee for the difference
B) the lessee must compensate the lessor for the difference
C) the lessor has no obligation to compensate the lessee for the excess
D) the lessee will record miscellaneous income

Question

Quizplus · Accepted Answer

The lessor has no obligation to compensate the lessee if the actual residual value exceeds the guaranteed residual value. The lessee's obligation is only to cover any shortfall, not to benefit from any excess.

At the End of a Lease, If the Actual Residual