2) On January 1, Lessee Company incorrectly recorded a 10-year operating lease as a capital lease. The lease requires annual payments. As a result of the recording error, Lessee Company's assets and total liabilities will be a)Total Assets not affected, Total Liabilities not affected b)Total Assets not affected, Total Liabilities understated c)Total Assets understated, Total Liabilities overstated d)Total Assets overstated, Total Liabilities overstated 3) On January 1, Lessee Company incorrectly recorded a 10-year capital lease as an operating lease. The lease requires annual payments. As a result of the recording error, Lessee Company's current ratio and debt to stockholders' equity ratio will be a)Current Ratio not affected, Equity Ratio not affected b)Current Ratio understated, Equity Ratio understated c)Current Ratio overstated, Equity Ratio overstated d)Current Ratio overstated, Equity Ratio understated 4) On January 1, Lessor Company incorrectly recorded a sales-type lease as an operating lease. As a result of this error, the reported amount for Lessor Company's property, plant, and equipment leased to others is a)not affected b)overstated c)understated d)not determinable 5) On January 1, Lessor Company incorrectly recorded a 10-year operating lease as a capital lease. The lease requires annual payments. As a result of the recording error, Lessor Company's rent revenue and interest revenue will be a)Rent Revenue not affected, Intereset Revenue not affected b)Rent Revenue overstated, Interest Revenue understated c)Rent Revenue understated, Interest Revenue overstated d)Rent Revenue understated, Interest Revenue understated 7) According to current GAAP, leased property recorded as a capital lease normally should be reported as a long-term or intangible asset on the balance sheet of the lessee and the lessor as follows: a)Lessee included, Lessor Included b)Lessee included, Lessor not included c)Lessee not included, Lessor not included d)Lessee not included, Lessor included