Please help and explain!

A lessor firm leased a plant asset with 4 years remaining in its service life as of the beginning of the lease. The lease term is 3 years. The present value of the lease payments is 90% of the fair value of the asset. Choose the correct statement. O the lessee records a right of use asset and treats the lease as a finance lease O the lessee records a right of use asset and treats the lease as an operating lease the lessee has the option to treat the lease as a short-term lease and not record a right of use asset O the lessor treats the lease as an operating lease O the lessee records a right of use asset and can choose to account for the lease as either a finance lease or an operating lease Choose the correct statement about amortizing or depreciating an asset under lease during the lease term. O the lessor does not depreciate the asset for financial reporting purposes if the lease is an operating lease for the lessor the lessee receives a tax deduction for amortizing the leased asset during the lease term, but only if it treats the lease as a finance lease O the lessee amortizes the lease for financial reporting purposes, but only if it treats the lease as finance lease O the lessor always depreciates the asset for tax purposes O the lessor depreciates the asset for tax purposes only when it treats the lease as a STL The fair value of a plant asset leased on 1/1/x4 is $200,000 and its cost is $160,000. The asset is leased for its entire service life of 10 years. The annual lease payments are due each Jan. 1 starting 20x4 (first payment due at signing. The implicit interest rate is 8%. Determine the increase in the lessor's pretax 20x4 income as a result of this lease. 56,000 52,134 O 40,000 53,792 55,672