In a Lease That Is Recorded as an Operating Lease

question 9

Multiple Choice

In a lease that is recorded as an operating lease by the lessee,the equal monthly rental payments should be

• A) allocated between interest expense and depreciation expense.
• B) allocated between a reduction of the liability for leased assets and interest expense.
• C) recorded as a reduction in the liability for leased assets.
• D) recorded as a rental expense.