On June 30, Hello Kitty Inc. leased equipment and treated it as an operating lease. What effects will this classification have on Hello Kittys financial statements for the year ending December 31?

a. No right-of-use asset is recorded.

b. Expense recognized is the same amount as the lease payment in each accounting period.

c. Interest expense recognized increases as the lease liability decreases.

d. Expense is recognized separately as amortization expense and interest expense.