When Depreciating a Leased Asset Which It Expects to Buy,a

Multiple Choice

When depreciating a leased asset which it expects to buy,a lessee will use which of the following calculations to determine the annual depreciation amount?

A) Depreciable amount of leased asset / lease term.
B) Total of minimum lease payments / lease term.
C) Depreciable amount of leased asset / useful life of leased asset.
D) Useful life of leased asset/Total of minimum lease payments.