alleryStart learning →Unguaranteed residual value equals the residual value minus the
AGuaranteed residual value
BFair value at inception
CMinimum lease payments
DUnearned finance income
Answer & Solution
Correct answer: A. Guaranteed residual value
The part of residual value above what is guaranteed is by definition the unguaranteed portion.
Keep practising AS 19 Leases
Browse all AS 19 Leases questions for CA Inter, or explore more Accounting topics.
Related questions
Leaving a finance lease off the lessee's balance sheet understates obligations and distortFor a lessee, the amount of a residual value guarantee is theA lessor on finance leases also discloses accumulated provision forWhich must a lessor disclose for finance leases?In a finance leaseback, the carrying amount is written down only if there isLeaseback below fair value, loss offset by cheap rentals, isAsset sold at fair value Rs 6 lakh, carrying amount Rs 8 lakh, operating leaseback. Loss rOperating leaseback above fair value: the excess is