Response to the following questions:
1. Describe briefly the procedures followed by the lessee to account for a capital lease.
2. From the standpoint of the lessor, a sales-type lease must meet one or more of the criteria of a capital lease as well as two additional criteria. Name these two additional criteria.
3. What is the basic difference between the accounting procedures used by a lessor for a sales-type lease and those used for a direct financing lease?
Support your answer using a minimum of two professional or academic sources.