Sumner leases a copier from Jenks Corporation under an operating lease. Which of the following statements is correct?
A) Jenks records depreciation and lease revenue.
B) Jenks records profit at the inception of the lease.
C) Sumner will receive title at the end of the lease.
D) Sumner records depreciation and interest expense.

Question

Quizplus · Accepted Answer

In an operating lease, the lessor (Jenks Corporation) retains ownership of the asset and records depreciation and lease revenue.

Sumner Leases a Copier from Jenks Corporation Under an Operating