The depreciation period used by the lessee for a depreciable leased asset must be:
A)the remaining life of the asset from the lease inception.
B)the same period that was used by the lessor.
C)the term of the lease.
D)at most the term of the lease but possibly longer if title is transferred at end of lease.

Question

Quizplus · Accepted Answer

The correct depreciation period for a depreciable leased asset by the lessee is at most the term of the lease but can be longer if the title is transferred to the lessee at the end of the lease. This allows for the asset to be depreciated over its useful life if the lessee becomes the owner.

The Depreciation Period Used by the Lessee for a Depreciable