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In accounting for capital leases, property is reported as an asset on the owner's balance sheet, and the periodic rental payments are recorded as rent

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In accounting for capital leases, property is reported as an asset on the owner's balance sheet, and the periodic rental payments are recorded as rent revenue on the owner's income statement. TRUE OR FALSE? According to GAAP, the lessee should account for a capital lease as if an amount equal to the FMV of the property was borrowed and immediately used to purchase the property. TRUE OR FALSE

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