Question

The basic difference for the lessor between a direct financing lease and a sales-type lease:_________

a. there is no difference for the lessor between a direct financing lease and a sales-type lease.
b. the lessor reimburses to the lessee the executory costs.
c. in a sales-type lease, the profit is recognized immediately. In a direct financing lease, the profit is deferred and recognized over the life of the lease.
d. in a direct financing lease, the profit is recognized immediately. In a sales-type lease, the profit is deferred and recognized over the life of the lease.

Answer 1

c. in a sales-type lease, the profit is recognized immediately. In a direct financing lease, the profit is deferred and recognized over the life of the lease.

Step-by-step explanation:

In the case of sales type lease, the profit is recorded instantly while on the other hand the financial lease in this there is a deferred profit and the same would be recorded over the lease life

Therefore according to the given situation, the option c is correct

And the rest of the options are wrong