Under a capital lease,the lessee does not record which of the following?
A) Rent expense
B) Capital lease obligations
C) Depreciation on the leased asset
D) Capital lease assets

Question

Quizplus · Accepted Answer

Under a capital lease, the lessee records the leased asset and the corresponding lease obligation as a liability on their balance sheet, and also records depreciation on the leased asset as an expense. However, they do not record rent expense as the leased asset is viewed as their own asset and not a rental expense.

Under a Capital Lease,the Lessee Does Not Record Which of the Following