When There Is an Unguaranteed Residual Value for the Lessor

Multiple Choice

When there is an unguaranteed residual value for the lessor in a Direct-Financing Lease, this means:

A) the total payments to be received by the lessor will come from the lessee.
B) the total payments to be received by the lessee will come from the lessor.
C) a portion of the total payments to be received by the lessor will come from parties outside the consolidated group.
D) a portion of the total payments to be received by the lessee will come from parties outside the consolidated group.