If a lessee classifies a lease as a capital lease and uses the straight-line method of depreciation, what is the amount to be amortized over the lease term?
A) the original amount capitalized less the present value of the guaranteed residual value if applicable)
B) the original amount capitalized less the unguaranteed residual value
C) the original amount capitalized less the guaranteed residual value if applicable)
D) fair value of the leased property
Correct Answer:
Verified
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