Which Statement Is Not True

question 101

Multiple Choice

Which statement is not true?

• A)If a lease is a capital lease because of a bargain purchase option, the leased asset should be depreciated over the life of the asset, not the life of the lease.
• B)The lessee ignores unguaranteed residual value in the measurement of the lease obligation.
• C)If there is a bargain purchase option, the lessor does not consider an unguaranteed residual value in measuring the lease receivable at the date of lease signing.
• D)In direct financing leases, the net investment in the lease should be adjusted each year by material changes (increases or decreases)in estimated unguaranteed residual values.

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