If a lessee classifies a lease as a capital lease and uses the straight-line method of depreciation, the amount to be amortized over the lease term is

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When a lessee classifies a lease as a capital lease and uses the straight-line method of depreciation, the amount to be amortized over the lease term is the original amount capitalized less the guaranteed residual value (if applicable). This is because the guaranteed residual value represents the amount that the lessor guarantees the asset will be worth at the end of the lease term, which reduces the amount of depreciation that needs to be recorded by the lessee.

If a Lessee Classifies a Lease as a Capital Lease