Under the pre-2019 accounting standards, GAAP identifies two different approaches in the reporting of leases by the lessee: capital and operating. Which of the following best describes the effects of leasing on the financial statements of the lessee?

A

Lease Type: Operating; Assets: Increased; Liabilities: Increased; Expenses: Depreciation and Interest

B

Lease Type: Capital; Assets: Increased; Liabilities: Increased; Expenses: Rent

C

Lease Type: Operating; Assets: None; Liabilities: None; Expenses: Rent

D

Lease Type: Capital; Assets: None; Liabilities: None; Expenses: Rent

E

Lease Type: Operating; Assets: None; Liabilities: None; Expenses: Depreciation and Interest