Which of the following statements regarding the calculation of the lessee's amortization expense for a finance lease is true? A. The guaranteed residual value is included in the measurement of the right-of-use asset to be amortized only to the extent that is likely to be owed. B. The guaranteed residual value is not included in the measurement of the right-of-use asset to be amortized. C. The unguaranteed residual value is included in the measurement of the right-of-use asset to be amortized. D. The bargain purchase option price is never included in the measurement of the right-of-use asset to be amortized.

Regarding a basic capital (finance) lease for a lessee, which of the following statements is INCORRECT? The lessee uses the lease as a source of funding. The lessee accounts for the lease as if an asset is purchased and a long-term obligation is entered into. The lessor uses the lease as a source of funding. The lessee records the leased asset at the lower of the minimum lease payments and the fair value of the asset at the lease's inception.

For a depreciable asset, the amount of depreciation recognised shall be in accordance with AASB 116. The asset shall be:   a fully depreciated over the shorter of the lease term and its useful life, if there is a reasonable certainty that the lessee will obtain ownership by the end of the lease term.   b fully depreciated over the shorter of the lease term and its useful life, if there is no reasonable certainty that the lessee will obtain ownership by the end of the lease term.   c fully depreciated over the longer of the lease term and its useful life, if there is a reasonable certainty that the lessee will obtain ownership by the end of the lease term.   d fully depreciated over the longer of the lease term and its useful life, if there is no reasonable certainty that the lessee will obtain ownership by the end of the lease term.

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