normally the rent must be expensed on a straight

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Unformatted text preview: and the lessee related to the lease obligation and the leased asset. - Under an operating lease, the lessee records rent expense (debit) over the lease term, and a credit to either cash or rent payable. - Normally the rent must be expensed on a straight line basis over its life, with a deferred liability or asset reported on the balance sheet for the difference between expense and cash outlay When a lease is considered a capital lease for both the lessor and the lessee describe what amounts will be found on the balance sheets - Capital lease is recorded as both an asset and a liability on the financial statements, generally at present value of the rental payments. Exercises 3- 3, 3- 6 Describe how a lessee ac...
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This document was uploaded on 03/05/2014 for the course FMIS 3619 at University of Minnesota Duluth.

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