Lease Illustration #4

Carrying value of lease receivable at end of third year will equal the RV.
There will be a final entry to receive the asset and remove the lease receivable from the books.
Depreciation Expense is not recorded by lessor

Question: What if the asset at the end of the lease term has a market value of $4,000?

Who bears the risk? Lessor or lessee?
If RV is unguaranteed the lessor does. Essentially, the lessee ignores the RV, pays rentals only, returns asset.