A machine is leased and the Present value of the minimum lease payments amounts to the fair value of the leased asset. How would this be shownin the lessee's books?OA. In the Balance Sheet as a fixed asset onlyOB. In the balance sheet as affixed asset and no entries shown in the Profit and Loss AccountOC. In the Balance sheet as a fixed asset, liability to the lessor and finance charge in the Income StatementOD. Lease payments shown in the Profit/Loss account

A. In the Balance Sheet as a fixed asset only:This option doesn't account for the liability to the…

A machine is leased and the Present value of the minimum lease payments amounts to the fair value of the leased assel. How would this be shown in the lessee's books? OA. In the Balance Sheet as a fixed asset only B. In the balance sheet as affixed asset and no entries shown in the Profit and Loss Account OC. In the Balance sheet as a fixed asset, liability to the lessor and finance charge in the Income Statement OD. Lease payments shown in the Profit/loss account

A machine is leased and the Present value of the minimum lease payments amounts to the fair value of the leased assel. How would this be shown in the lessee's books? OA. In the Balance Sheet as a fixed asset only B. In the balance sheet as affixed asset and no entries shown in the Profit and Loss Account OC. In the Balance sheet as a fixed asset, liability to the lessor and finance charge in the Income Statement OD. Lease payments shown in the Profit/loss account

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter11: Notes, Bonds, And Leases

Section: Chapter Questions

Problem 12Q

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Which of the following is not correct statement for accounting by the lessee? The lessee records depreciation expense on the right-of-use asset. O b. The lessee recognizes interest expense on the lease liability over the lease term O c. The lease liability is computed as the present value of the lease payments. O d. The operating lease method is used to account for the lease.
Payments on an operating lease will appear: A. In the profit and loss account as an expense B. In the balance sheet as a fixed asset. C. In the balance sheet as along as a long term creditor. D. In the profit and account as a non-trading revenue.
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Please answer number 17 only.
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