Question $10$

A machine is leased and the Present value of the minimum lease payments amounts to the fair value of the leased asset. How would this be shown

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in the lessee's books?

Marked out of $1\mathrm{.}00$

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A$.$ In the Balance Sheet as a fixed asset only

B$.$ In the balance sheet as affixed asset and no entries shown in the Profit and Loss Account

C$.$ In the Balance sheet as a fixed asset, liability to the lessor and finance charge in the Income Statement

D$.$ Lease payments shown in the Profit$/$Loss account