The lease of land and building when split causes difficulty in the allocation of the lease
payments. In this case, the lease payments should be split *
1 point
According to the cost using ratio and proportion
According to the relative fair value of the two assets According to a method devised by the entity According to the useful life of the two assets
What is the treatment of an unguaranteed residual value in determining the cost of
sales under a sales type lease? * 1 point
The unguaranteeed residual value is ignored.
The unguaranteed residual value is added to the cost the leased asset. The unguaranteed residual value is deducted from the cost of the leased asset at absolute amount. The unguaranteed residual value is deducted from the cost of the leased asset at present value.