Problem: Sales-type leases and direct financing leases are two of the classifications of leases described in FASB codification, from the standpoint of the lessor.
Compare and contrast a sales-type lease with a direct financing lease as follows:
Gross investment in the lease.
Amortization of unearned interest income.
Manufacturer's or dealer's profit.
Do not discuss the criteria for distinguishing between the leases described above and operating leases.