In a Lease That Is Recorded as a Direct Financing

question 3

Multiple Choice

In a lease that is recorded as a direct financing lease by the lessor,unearned revenue

• A) should be amortized over the period of the lease using the interest method.
• B) should be amortized over the period of the lease using the straight-line method.
• C) does not arise.
• D) should be recognized in full at the inception of the lease.

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