Which one of the following items is not part of the minimum lease payments from the standpoint of the lessee?
A) The minimum rental payments called for by the lease
B) Any guarantee the lessee is required to make at the end of the lease term regarding any deficiency from a specified minimum
C) Any estimated residual value at the end of the lease term
D) Any payment the lessee must make at the end of the lease term to purchase the leased property under a bargain purchase option

Question

Quizplus · Accepted Answer

Estimated residual value is not a payment required by the lessee, but rather an estimation of the property's value at the end of the lease term. The minimum rental payments (A) and any required payments at the end of the lease term (B and D) are part of the minimum lease payments.

Which One of the Following Items Is Not Part of the Minimum