The following journal entry,in the books of Lessee Pty Limited,records the entry for the depreciation expense at 30 June 2010.The lease term is of 5 years duration.Which of the following statements is correct? 30 June 2010![The following journal entry,in the books of Lessee Pty Limited,records the entry for the depreciation expense at 30 June 2010.The lease term is of 5 years duration.Which of the following statements is correct? 30 June 2010 (to record depreciation expense [(739,648 - 120,000) /6] A) The economic life of the asset is 6 years. B) It is reasonably certain that the lessee will obtain ownership of the asset at the end of the lease term. C) It is reasonably certain that the lessee will not obtain ownership of the asset at the end of the lease term. D) The economic life of the asset is 6 years; and it is reasonably certain that the lessee will obtain ownership of the asset at the end of the lease term. E) The economic life of the asset is 6 years; and it is reasonably certain that the lessee will not obtain ownership of the asset at the end of the lease term.](https://d2lvgg3v3hfg70.cloudfront.net/TB3456/11ea7ef8_b350_6117_b9ea_dd6581e1a068_TB3456_00.jpg)
(to record depreciation expense [(739,648 - 120,000) /6]
A) The economic life of the asset is 6 years.
B) It is reasonably certain that the lessee will obtain ownership of the asset at the end of the lease term.
C) It is reasonably certain that the lessee will not obtain ownership of the asset at the end of the lease term.
D) The economic life of the asset is 6 years; and it is reasonably certain that the lessee will obtain ownership of the asset at the end of the lease term.
E) The economic life of the asset is 6 years; and it is reasonably certain that the lessee will not obtain ownership of the asset at the end of the lease term.
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