Depreciation expense will be recorded in the accounts of the lessee and lessor for which type of leases? $\begin{array}{lll}
& \text { Lessee} & \text { Lessor}\
\text { I. } & \text { operating } & \text { direct financing } \
\text { II. } & \text { capital } & \text { operating } \
\text { III. } & \text { operating } & \text { operating } \
\text { IV. } & \text { capital } & \text { sales-type }
\end{array}$

A)I
B)II
C)III
D)IV

Question

Depreciation expense will be recorded in the accounts of the lessee and lessor for which type of leases? $\begin{array}{lll}
 & \text { Lessee} & \text { Lessor}\
\text { I. } & \text { operating } & \text { direct financing } \
\text { II. } & \text { capital } & \text { operating } \
\text { III. } & \text { operating } & \text { operating } \
\text { IV. } & \text { capital } & \text { sales-type }
\end{array}$

A)I
B)II
C)III
D)IV

Quizplus · Accepted Answer

Depreciation expense will be recorded in the accounts of the lessee and lessor for which type of leases?

\begin{array}{lll} & \text { Lessee} & \text { Lessor}\\\text { I. } & \text { operating } & \text { direct financing } \\\text { II. } & \text { capital } & \text { operating } \\\text { III. } & \text { operating } & \text { operating } \\\text { IV. } & \text { capital } & \text { sales-type }\end{array}

Depreciation Expense Will Be Recorded in the Accounts of the Lessee