In a Direct-Financing Lease

Multiple Choice

In a direct-financing lease,

A) the lessor owns the asset and records the depreciation of the leased asset in its accounts.
B) the lessee owns the asset and records the depreciation of the leased asset in its accounts.
C) the lessor includes the lease payments as unearned income.
D) the lessee recognizes the right-of-use asset at the commencement of the lease.