UESTION 4 Essee with a finance lease in which ownership of the asset transfers to the lessee at the end of the lease should amortize the leased asset over the: asset's remaining useful life. term of the lease. life of the asset or the term of the lease, whichever is shorter. life of the asset or the term of the lease, whichever is longer. QUESTION 5 "hen a lease is accounted for by both the lessor and the lessee as an operating lease, which party is responsible for recording depreciation on the leased asset? Lessee. Lessor. Neither party. The answer depends on whether ownership of the leased asset reverts to the lessor at the end of the lease. QUESTION 6 The amount to be recorded as the cost of an asset under finance lease is equal to the: present value of the lease payments. present value of the lease payments or the fair value of the asset, whichever is lower. present value of the lease payments plus the present value of any unguaranteed residual value. carrying value of the asset on the lessor's books