Question: Under the operating lease method, the lessor O no longer reports the underlying asset on its balance sheet. O realizes a gross profit on

Under the operating lease method, the lessor O no longer reports the

Under the operating lease method, the lessor O no longer reports the underlying asset on its balance sheet. O realizes a gross profit on the sale of the asset. continues to recognize the underlying asset on its balance sheet and recognizes lease revenue. recognizes rental revenue using the effective interest amortization method.

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