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.