Of what significance is 1 an unguaranteed and 2 a


The residual value is the estimated fair value of the leased property at the end of the lease term.

(a) Of what significance is (1) an unguaranteed and (2) a guaranteed residual value in the lessee's accounting for a capitalized-lease transaction?

(b) Of what significance is (1) an unguaranteed and (2) a guaranteed residual value in the lessor's accounting for a direct-financing lease transaction? 

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Accounting Basics: Of what significance is 1 an unguaranteed and 2 a
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