Question: Regarding a basic capital (ASPE) lease for a lessee, which of the following statements is INCORRECT? The lessee records the leased asset at the lower

Regarding a basic capital (ASPE) lease for a lessee, which of the following statements is INCORRECT?

The lessee records the leased asset at the lower of the minimum lease payments and the fair value of the asset at the lease's inception.

The lessee accounts for the lease as if an asset is purchased and a long-term obligation is entered into.

The lessor uses the lease as a source of funding.

The lessee uses the lease as a source of funding.

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