Which of the following lease-related revenue and expense items would be recorded by a lessor if the lease is accounted for as an operating lease?
Question 9 options:
Lease Revenue and Depreciation Expense |
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Interest Revenue only |
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Lease Revenue only |
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Depreciation Expense only |
answer : Lease Revenue and Depreciation Expense
explanation
since the lessor is the owner of the asset who gives an asset for operating or using and get lease revenue from the lessee the lessor records revenue as lease revenue in his books .under the operating lease the lessor have the ownershi rights over the life of the asset so he will recods the depreciation as an expense in his books over the life of the asset .
lessor is a person who gives an asset for operating or using without transfering ownership rights .
lessee is a person who uses the lease asset on agreement
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