The lessee in an operating lease capitalizes the asset if it meets only one of the four criteria.

Name: The lessee in an operating lease capitalizes the asset if it meets only one of the four criteria.
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The lessee in an operating lease does not capitalize the asset, regardless of whether it meets any of the four criteria. In an operating lease, the lessor retains ownership of the asset and the lessee simply uses it for a period of time in exchange for rental payments.

The Lessee in an Operating Lease Capitalizes the Asset If