Answer whether the following statements are true or false?

1. If a lease transfers ownership of the property to the lessee by the end of the lease term, it will be classified as a finance lease by the lessor.
2. Minimum lease payments include any amount to be paid for bargain purchase options and guaranteed residual values.
3. Any lease that contains a purchase option must be treated as a finance lease by the lessor.
4. The lessee depreciates the leased asset under a finance lease.
5. The inception of the lease is defined as the date of the lease agreement or the date of an earlier written commitment.
6. The commencement of the lease term is defined as the date on which the leased property is actually transferred to the lessee.
7. A lessor under a finance lease recognizes a net investment in the lease measured at the present value of the lease payments and unguaranteed residual value, if any.
8. Interest rate implicit in the lease is the discount rate that, at the inception of the lease, causes the aggregate present value of the minimum lease payments and the unguaranteed residual value to be equal to the sum of the fair value of the leased asset and any initial direct costs of the lessor.
9. Entity A (lessor) enters into a 10-year finance lease with Entity B. Lease payments of $100 are due at the start of each year. The interest rate implicit in the lease is 10%. At the commencement date, Entity A will recognize a net investment in the lease computed as $100 x PV of ordinary annuity @10%, n=10.
10. Entity A (lessor) enters into a 10-year finance lease with Entity B. Lease payments of $100 are due at the start of each year. The interest rate implicit in the lease is 10%. Entity A will recognize interest income in Year 1 computed as follows: (present value of lease payments - first payment) x 10%.