Which of the following statements about capital leases is INCORRECT?
A) Under a capital lease, the lessee's books do not report the leased asset.
B) A capital lease can transfer title of the leased asset to the lessee at the end of the lease term.
C) A capital lease contains a bargain purchase option.
D) Under a capital lease, the lessee records a lease liability at the beginning of the lease term.
Correct Answer:
Verified
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