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Basic Question 11 of 15
The excess of the fair value of lease property at the inception of the lease over its cost or carrying amount should be considered by the lessor as ______.
B. manufacturer's or dealer's profit from a sales-type lease
C. manufacturer's or dealer's profit from a direct financing lease
A. unearned income from a sales-type lease
B. manufacturer's or dealer's profit from a sales-type lease
C. manufacturer's or dealer's profit from a direct financing lease
User Contributed Comments 2
| User | Comment |
|---|---|
| kalps | Excess of fair value over the lessor's cost is know as the dealer's profit |
| moneyguy | A direct financing lease yields no initial transaction profit. Revenues are the interest payments received by lessor. |
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Learning Outcome Statements
explain the financial reporting of leases from the perspectives of lessors and lessees
CFA® 2025 Level I Curriculum, Volume 2, Module 8.