When a Lessee Is Accounting for a Capital (Finance) Lease

Multiple Choice

When a lessee is accounting for a capital (finance) lease

A) a guaranteed residual value is excluded from the "minimum lease payments."
B) an unguaranteed residual value is included in the "minimum lease payments."
C) a guaranteed residual value is basically an additional lease payment due at the end of the lease.
D) the present value of any guaranteed residual is deducted from the leased asset cost in determining the depreciable amount.