and during the first year of the lease, assuming equal monthly payments
are made by the lessee at the beginning of each month of the lease.
Describe the change in accounting, if any, when rental payments are not
made on a straight-line basis. Part 2: 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.
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