Question

Finance Lease

Lessee recognizes __ __ on the lease liability over the life of the lease using the __-__ __ and records amortization expense on a straight line basis

Answer 1

In a finance lease, the lessee recognizes the lease liability over the life of the lease using the effective interest method and records amortization expense on a straight-line basis.

Step-by-step explanation:

In a finance lease, the lessee recognizes the lease liability over the life of the lease using the effective interest method and records amortization expense on a straight-line basis.