From the lessee's perspective, a finance lease results in all of the following EXCEPT

Question

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In a finance lease, the lessee recognizes an asset and a liability on the Statement of Financial Position (A and B), as well as interest expense on the Statement of Income (C). However, the lessee does not recognize rent expense on the Statement of Income, as the payments are treated as principal and interest payments on the liability.

From the Lessee's Perspective, a Finance Lease Results in All