When the Lessee Guarantees the Residual Value at the End

When the lessee guarantees the residual value at the end of the lease term, the:

A) lessor will use this amount in computing periodic depreciation expense.
B) lessee may have to pay the lessor additional cash if the actual residual value is not equal to the estimated residual value.
C) lessee will have to pay the lessor additional cash because the guaranteed residual value was included in computing the annual rental amounts.
D) lessor will receive an additional cash flow at the end of the lease term.

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