Which of the following statements pertaining to lease accounting is not correct?
A)The lessee will depreciate a leased asset either over the lease term or the leased asset's useful life dependent upon which of the required lease capitalization criteria is(are)met.
B)The lessee ignores a guaranteed salvage value when calculating depreciation expense associated with a capital lease.
C)The lessor's annual income will decrease over time regardless of whether the lease is a sales-type lease or a direct financing lease.
D)The manufacturer's or dealer's profit recorded by the lessor is the same whether or not the residual value is guaranteed by the lessee.

Question

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The Answer of Which of the following statements pertaining to lease accounting is not correct?
A)The lessee will depreciate a leased asset either over the lease term or the leased asset's useful life dependent upon which of the required lease capitalization criteria is(are)met.
B)The lessee ignores a guaranteed salvage value when calculating depreciation expense associated with a capital lease.
C)The lessor's annual income will decrease over time regardless of whether the lease is a sales-type lease or a direct financing lease.
D)The manufacturer's or dealer's profit recorded by the lessor is the same whether or not the residual value is guaranteed by the lessee.

Which of the Following Statements Pertaining to Lease Accounting Is