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Question
If a lease contains a residual value guarantee, the lessee must
A. add the guaranteed amount to the present value of the minimum lease payments.
B. add the present value of the guaranteed amount to the present value of the minimum lease payments.
C. include the guaranteed amount in the minimum lease payments only if the lessee intends to keep the asset at the end of the lease.
D. ignore the guaranteed amount if the lessee intends to keep the asset at the end of the lease.
Answer
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