The lessor of a building with an operating lease will present on its balance sheet an asset equal to
A)zero.
B)the present value of future lease receipts.
C)the depreciated historical cost of the asset.
D)the fair value of the leased asset.

Question

Quizplus · Accepted Answer

The lessor of a building with an operating lease will present the building on its balance sheet at the depreciated historical cost of the asset, reflecting its ownership and the depreciation expense over time.

The Lessor of a Building with an Operating Lease Will