# Beginning in 2019, operating leases will be recorded: A) only on the books of the lessor. B) only on

Beginning in 2019, operating leases will be recorded: A) only on the books of the lessor. B) only on the income statement of the lessee as each lease payment is expensed. C) as an asset on the balance with a value equal to the estimated residual value of the leased asset. D) in the footnotes rather than on the balance sheet. E) on the balance sheet of the lessee. I 8. Assume the initial present value of the payments on a lease are equal to the cost of the leased asset. This capital lease is recorded as an asset on the balance sheet of the lessee in an amount equal to the A) dollar amount of

Beginning in 2019, operating leases will be recorded: A) only on the books of the lessor. B) only on the income statement of the lessee as each lease payment is expensed. C) as an asset on the balance with a value equal to the estimated residual value of the leased asset. D) in the footnotes rather than on the balance sheet. E) on the balance sheet of the lessee. I 8. Assume the initial present value of the payments on a lease are equal to the cost of the leased asset. This capital lease is recorded as an asset on the balance sheet of the lessee in an amount equal to the A) dollar amount of each lease payment multiplied by the total number of lease payments in the original agreement B) dollar amount of each lease payment multiplied by the number oflease payments remaining. C) dollar amount of each lease payment multiplied by the number of lease payments per year. D) present value of the remaining lease payments. E) lesser of the present value of the remaining lease payments or the present value of the lease payments for a one-year period.

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