Which Statement Is Correct About the "Guaranteed Residual Value

Which statement is correct about the "guaranteed residual value"?

A) It is not included in the present value of the payment calculation.
B) Lessee assumes the risk of the property falling below the guaranteed amount.
C) Lessor assumes the risk of the property falling below the guaranteed amount.
D) It is a non-lease cost in the lease arrangement.

Correct Answer:

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