if the lessee is expected to take ownership of a leased asset at the end of the lease term, the lessor must use an estimated residual value when calculating the lease payments necessary to achieve a desired rate of return: False.
Lease payments are those that the lessee is required to make to the lessor, who is the asset's owner, under the terms of the lease agreement in exchange for the right to use the asset. The lessor typically returns the asset to the owner at the end of the lease period.
The terms under which a lessor agrees to rent out a piece of property to be used by a lessee are laid out in a lease, which might be implicit or written out. According to the agreement, the lessee will have access to the property for the predetermined amount of time, and the owner will receive recurring payments for the predetermined amount of time.
Thus, the given statement is false.
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