For an operating lease, the lessor maintains the leased asset on its balance sheet and records depreciation expense each period unless the asset is fully depreciated.

Name: For an operating lease, the lessor maintains the leased asset on its balance sheet and records depreciation expense each period unless the asset is fully depreciated.
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In an operating lease, the lessor retains ownership of the asset, keeps it on their balance sheet, and records depreciation over the asset's useful life.

For an Operating Lease, the Lessor Maintains the Leased Asset