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Foster, Inc. plans to enter into a lease next year, and will account for it under the new lease accounting standard. Foster is the lessee, and the...

Foster, Inc. plans to enter into a lease next year, and will account for it under the new lease accounting standard. Foster is the lessee, and the lease will be an operating lease. At the inception of the lease, Foster will record an amount equal to the present value of the future lease payments as:

An expense and a liability

An asset, with a different amount recorded as a liability

A liability, with a different amount recorded as an asset

An asset and a liability

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