Which of the Following Applies If a Lease Is Interpreted

Multiple Choice

Which of the following applies if a lease is interpreted as unilaterally unperformed by the lessee?

A) The lease contract is fully executed by the lessor when possession of the leased asset is transferred to the lessee.
B) An asset and liability do not exist for the lessee.
C) The lessor permits use of the asset for one period at a time and only if the rentals are paid by the lessee.
D) Current lease payments are expensed by the lessee.