Knowledge Check 01 Under an operating lease: (Select all that apply.) Check All That Apply:

a) The lessee reports amortization expense and interest expense separately in its income statement. The lessee reports amortization expense and interest expense separately in its income statement.

b) The lessee reports a single amount of lease expense, which is equal to interest expense plus amortization expense, in its income statement. The lessee reports a single amount of lease expense, which is equal to interest expense plus amortization expense, in its income statement.

c) The lessor reports a single amount of lease revenue, which is equal to interest revenue plus amortization revenue, in its income statement. The lessor reports a single amount of lease revenue, which is equal to interest revenue plus amortization revenue, in its income statement.

d) The lessee reports lease expense on a straight-line basis and the lessor reports lease revenue on a straight-line basis over the lease term. The lessee reports lease expense on a straight-line basis and the lessor reports lease revenue on a straight-line basis over the lease term. Which apply?