Response to the following problem:
Sales-type leases and direct-financing leases are two of the classifications of leases described in FASB pronouncements from the standpoint of the lessor.
Instructions
Compare and contrast a sales-type lease with a direct-financing lease as follows.
(a) Lease receivable.
(b) Recognition of interest revenue.
(c) Manufacturer's or dealer's profit.
Do not discuss the criteria for distinguishing between the leases described above and operating leases.