According to current GAAP, leased property recorded as a capital lease normally should be reported as a long-term or intangible asset on the balance sheet of the lessee and the lessor as follows:

Question

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According to current GAAP, leased property recorded as a capital lease should be reported as a long-term or intangible asset on the balance sheet of the lessee (Choice II) and the lessor (Choice II). The other options (I, III, IV) are not applicable in this context.

According to Current GAAP, Leased Property Recorded as a Capital