If the Lessee and Lessor Use Different Interest Rates to Account

Multiple Choice

If the lessee and lessor use different interest rates to account for a finance/sales-type lease, then:

A) The lessee is unaware of the lessor's implicit rate.
B) Total expenses for the lessee will equal the lessor's total revenues.
C) GAAP has been violated by at least one party.
D) The lessee will report more net income for the year.