In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned interest income * O should be recognized at the lease's expiration. O should be amortized over the period of the lease using the effective interest method. O does not arise. O should be amortized over the period of the lease using the straight-line method.
In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned interest income * O should be recognized at the lease's expiration. O should be amortized over the period of the lease using the effective interest method. O does not arise. O should be amortized over the period of the lease using the straight-line method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned
interest income *
O should be recognized at the lease's expiration.
O should be amortized over the period of the lease using the effective interest method.
O does not arise.
O should be amortized over the period of the lease using the straight-line method.
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