When accounting for a finance lease,the lessee capitalizes the asset even though the lessee may never take legal title to it.

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In a finance lease, the lessee is considered the owner of the asset and must capitalize it on their balance sheet, even if they never take legal title to it. This is because they bear most of the benefits and risks of ownership under the terms of the lease agreement.

When Accounting for a Finance Lease,the Lessee Capitalizes the Asset