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Posted on Jun 27, 2024

GAAP requires the lessee party to a capital lease A. to record the lease on its balance sheet at the present value of future lease

GAAP requires the lessee party to a capital lease

A. to record the lease on its balance sheet at the present value of future lease payments.

B. to record rental revenue as each lease payment is received.

C. to depreciate the leased asset.

D. to transfer ownership to the lessee.

Which of the above is correct?

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