Depreciation expense will be recorded in the accounts of the lessee and lessor for which type of leases?

Name: Depreciation expense will be recorded in the accounts of the lessee and lessor for which type of leases?
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Question

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Depreciation expense will be recorded by both the lessee and lessor for finance leases (type II), but not for operating leases (type I) or short-term leases (type III) as the lessor retains ownership of the asset. Type IV leases do not exist.

Depreciation Expense Will Be Recorded in the Accounts of the Lessee