Which of the following statements about a capital lease is false?

Question

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

AHMAD OMAR CMA-CertIFR · Answer

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.

Rizwan Chhapra · Answer

B) The lessor records the leased item as an asse

krishnamoorthy Achutham · Answer

C.Because the lessee cannot claim depreciation in his books for leased assets.

هيثم ناجى · Answer

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

Sandeep Kumar Pandey · Answer

C. The lessee records depreciation or capital cost allowance on the leased asset.

alsayed elshereif · Answer

C. Is the correct

How come, the leesse depreciate an a unowned asset ??!!!

Majid Wangade · Answer

C. The lessee records depreciation or capital cost allowance on the leased asset.

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