From the standpoint of the lessee,the minimum lease payment includes all of the following except
A) the guaranteed residual value.
B) the lessee's obligation to pay executory costs.
C) the bargain purchase option.
D) any payment that the lessee must make upon failure to extend or renew the lease.

Question

Quizplus · Accepted Answer

The lessee's obligation to pay executory costs (such as insurance, maintenance, and taxes directly related to the leased asset) is not included in the minimum lease payments. Minimum lease payments typically include the guaranteed residual value, the bargain purchase option, and any penalty for failure to renew or extend the lease, but not executory costs, which are separate from the lease payments themselves.

From the Standpoint of the Lessee,the Minimum Lease Payment Includes