Q 21A.34:

Which of the following is correct regarding operating leases for lessors?

• A :

  The lessor recognizes the asset on its balance sheet, depreciates the asset using its preferred method, and recognizes lease revenue.

• B :

  The lessor removes the asset from its balance sheet, depreciates the asset using its preferred method, and recognizes lease revenue.

• C :

  The lessor recognizes the asset on its balance sheet and recognizes interest revenue and lease revenue.

• D :

  The lessor removes the asset from its balance sheet, and recognizes interest revenue and lease revenue.