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Under the operating lease method, the lessor O no longer reports the underlying asset on its balance sheet. O realizes a gross profit on
Under the operating lease method, the lessor O no longer reports the underlying asset on its balance sheet. O realizes a gross profit on the sale of the asset. continues to recognize the underlying asset on its balance sheet and recognizes lease revenue. recognizes rental revenue using the effective interest amortization method.
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
