The appropriate valuation of an operating lease on the balance sheet of a lessee is:
A)the absolute sum of the lease payments.
B)zero unless the lessee made a prepayment of rent.
C)the present value of the sum of the lease payments discounted at an appropriate rate.
D)the market value of the asset at the date of the inception of the lease.

Question

Quizplus · Accepted Answer

The Answer of The appropriate valuation of an operating lease on the balance sheet of a lessee is:
A)the absolute sum of the lease payments.
B)zero unless the lessee made a prepayment of rent.
C)the present value of the sum of the lease payments discounted at an appropriate rate.
D)the market value of the asset at the date of the inception of the lease.

The Appropriate Valuation of an Operating Lease on the Balance