What are the three types of expenses that a lessee experiences with a capital lease?
A)Lease expense,executory costs,interest expense.
B)Depreciation expense,lease expense,interest expense.
C)Executory costs,lease expense,depreciation expense.
D)Depreciation expense,interest expense,executory costs.

Question

Quizplus · Accepted Answer

In a capital lease, the lessee experiences depreciation expense on the leased asset, interest expense on the lease liability, and executory costs which are additional costs like maintenance or insurance.

What Are the Three Types of Expenses That a Lessee