In the case of a lease, the accounting treatment by the lessee could:

1. provide note disclosure to the accounts and recognise the lease payments in the same way as a rental expense.

2. recognise an asset and associated liability equal in value to the present value of the minimum lease payments.

3. calculate the IRR implicit in the lease contract and disclose it in the notes to the account

4. accrue the lease payments and match them against revenues earned by using a unit of production method

that all show in the question