Final answer:
A sales-type lease includes the present value of the unguaranteed residual value in its sales price. The assets are depreciated by the lessor, and the gross profit remains the same regardless of whether the residual value is guaranteed or unguaranteed. However, the present value of the guaranteed residual value is deducted to determine the cost of goods sold.
Step-by-step explanation:
A sales-type lease is a type of lease where the sales price includes the present value of the unguaranteed residual value. In this type of lease, the assets are depreciated by the lessor. The gross profit will be the same whether the residual value is guaranteed or unguaranteed. However, the present value of the guaranteed residual value is deducted to determine the cost of goods sold.