What is the difference between a sales-type and a direct financing type of capital lease?

Question

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The Answer is The lessor should report a lease as a sales-type lease when at least one of the capital lease criteria is met,both lessor certainty criteria are met and there is a manufacturer's or dealer's profit or loss).This implies that the leased asset is an item of inventory and that the seller is earning a gross profit on the sale.Sales-type leases arise when manufacturers or dealers use leasing as a means of marketing their products When at least one of the capital lease criteria and both lessor certainty criteria are met,but the lessor has no manufacturer's or dealer's profit or loss),lessor's account for the lease as a direct financing lease.Under the direct financing method,the lessor is essentially viewed as a lending institution for revenue recognition purposes.

What Is the Difference Between a Sales-Type and a Direct