Which of the following statements concerning guaranteed residual values is appropriate for the lessee?
1. The asset and related liability should be increased by the present value of the residual value.
2. The asset and related liability should be decreased by the amount of the residual value.
3. The asset and related liability should be decreased by the present value of the residual value.
4. The asset and related liability should be increased by the amount of the residual value.