1. Explain how a lessor would compute annual lease payments for purposes of a lease agreement.
 
 
 
 
 
 
 
 

2. From the perspective of the lessor, distinguish between a sales-type lease and a direct financing lease.
 
 
 
 
 
 
 
 
 

3. What are the two most popular ways to structure a lease so that it qualifies as an operating lease on the books of the lessee and a capital lease on the books of the lessor?
 
 
 
 
 
 
 
 
 

4. What is the difference in the way a lessee accounts for a guaranteed v. an unguaranteed residual value in a direct financing lease?