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A. The lessor capitalizes the net investment in the lease.
B. The lessor records the leased item as an asset.
C. The lessee records depreciation or capital cost allowance on the leased asset.
D. The lease arrangement represents a form of financing
choice B - because the ownership of the asset is transferred o the lessee who will record the leased item as an asset and make depreciation.
B) The lessor records the leased item as an asse
C.Because the lessee cannot claim depreciation in his books for leased assets.
The correct answer is B
At the capital lease the lessor dont record the leased item as an asset
The lessor remove it from books
C. The lessee records depreciation or capital cost allowance on the leased asset.
C. Is the correct
How come, the leesse depreciate an a unowned asset ??!!!
C. The lessee records depreciation or capital cost allowance on the leased asset.
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