Under a capital lease,the lessee does all of the following except:
A)debits Capital Lease Equipment.
B)debits Rent Expense.
C)records depreciation on the leased asset.
D)credits Capital Lease Obligations.

Question

Quizplus · Accepted Answer

Under a capital lease, the lessee does not debit Rent Expense as the leased asset is recorded as a long-term asset and its depreciation is charged to the lease expense. The lessee would debit Capital Lease Equipment, record depreciation on the leased asset, and credit Capital Lease Obligations.

Under a Capital Lease,the Lessee Does All of the Following