Which Entry Is Needed by the Lessee for an Operating

question 79

Multiple Choice

Which entry is needed by the lessee for an operating lease?

• A)Recording of interest expense.
• B)Recording of the lease obligation.
• C)Recording of rental expense.
• D)Recording of depreciation expense.

---

Definitions:

Educational Loan Interest

Interest paid on a loan taken out to pay for educational expenses. This interest can sometimes be deducted from taxable income.

Qualified Education Loans

These are loans obtained solely to pay for educational expenses that are qualified and necessary, including tuition, room, board, and books.

Deduction

An amount that is subtracted from an individual's gross income, decreasing the amount of taxable income.

AGI Deduction

Deductions from gross income that occur before calculating the taxable income, specifically affecting the adjusted gross income on a tax return.