If the Residual Value of a Leased Asset Turns Out

Multiple Choice

If the residual value of a leased asset turns out to be more than the amount guaranteed by the lessee, the:

A) Lessor must compensate the lessee for the excess.
B) Lessee must pay the lessor the amount of the excess.
C) Lessee will reduce the last year's depreciation.
D) Lessor is not obligated to compensate the lessee for the excess.