Does the choice of discount rate (i.e., the lessee's incremental borrowing rate versus the lessor's implicit rate) materially affect lease valuation for the lessee? OA. The choice of discount rate will impact the valuation of both the asset and liability. The higher the rate, the lower the measurement of the asset and the liability. OB. The choice of discount rate does not impact the valuation of the asset or the liability. OC. The higher the implicit rate, the lower the measurement of the asset and the liability. The incremental borrowing rate is not used in lease contracts. It is only used in asset purchase contracts. OD. The incremental borrowing rate will impact the valuation of both the asset and liability. The implicit rate has no bearing on the valuation of the asset or the liability.