Question

"Lessee and lessor entered into a lease. The lease is classified as an operating lease by both the lessee and lessor. The lease term is shorter than the useful life of the asset. How will the leased asset be accounted for?"

Answer 1

Answer:

Since the lease term is shorter than the useful life of the asset; the lessor will keep the asset in his or her book, and enter the record as depreciation expenses under the asset useful life

Explanation:

Since the lease term is shorter than the useful life of the asset; the lessor will keep the asset in his or her book, and enter the record as depreciation expenses under the asset useful life