The Appropriate Valuation of an Operating Lease on the Balance

question 159

Multiple Choice

The appropriate valuation of an operating lease on the balance sheet of a lessee is:

• A)the absolute sum of the lease payments.
• B)zero unless the lessee made a prepayment of rent.
• C)the present value of the sum of the lease payments discounted at an appropriate rate.
• D)the market value of the asset at the date of the inception of the lease.