For a lessor using the operating lease method of recording a lease,the net effect on income is recognized evenly throughout the term of the lease,if the lessor uses straight-line depreciation.

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Under the operating lease method, the lessor recognizes lease income evenly over the term of the lease, which matches the straight-line depreciation of the leased asset. Therefore, the net effect on income is recognized evenly throughout the term of the lease if the lessor uses straight-line depreciation.

For a Lessor Using the Operating Lease Method of Recording