Matt Co. is the lessor in connection with an operating lease. Matt Co. would record:
A) Depreciation expense.
B) A right-of-use asset.
C) Amortization expense.
D) Interest revenue.

Question

Quizplus · Accepted Answer

The lessee, not the lessor, records a right-of-use asset. Straight-line lease revenue is recognized by the lessor in an operating lease. The lessor in an operating lease will not remove the asset from its books, and so would have depreciation on that asset.

Matt Co Is the Lessor in Connection with an Operating Lease