This ASC 842 sales-type lease example features an 8-year copier lease at $1,000 per month, a fair value of $62,000, a $54,000 carrying amount, and an unguaranteed $20,000 residual value. The PV of payments is $56,035.17, meeting the 90% threshold for sales-type classification. Initial recognition records receivables, residual asset, direct costs, and sales profit, while monthly entries account for payments, interest income, and receivable reclassifications. At lease end, the residual asset is reclassified as a copier. EZLease setup steps guide accurate classification, calculations, and compliance.

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