In a Lease That Is Appropriately Recorded as a Direct

Multiple Choice

In a lease that is appropriately recorded as a direct financing lease (ASPE) or finance lease (IFRS) by the lessor, the unearned interest income is

A) amortized and taken into income over the lease term using the effective interest method.
B) amortized and taken into income over the lease term using the straight-line method.
C) taken into income at the inception of the lease.
D) taken into income at the end of the lease.