Consolidation Procedures for Sales-Type Leases

question 53

Multiple Choice

Consolidation procedures for sales-type leases:

• A)​allow for the recognition of the profit or loss from the lease by the lessee at the inception of the lease.
• B)​allow for the recognition of the profit or loss from the lease by the lessor at the inception of the lease.
• C)​defer the profit or loss and then amortize it over the lessee's period of usage.
• D)​defer the profit or loss and then amortize it over the lessor's period of usage.

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