Question: When computing the present value of the lease payments, a lessee should: A. use its incremental borrowing rate or the implicit rate of the lessor,

When computing the present value of the lease payments, a lessee should:

A. use its incremental borrowing rate or the implicit rate of the lessor, whichever is higher, assuming that the implicit rate is known to the lessee.

B. use the implicit rate of the lessor, if known or determinable; otherwise use its incremental borrowing rate.

C. use its incremental borrowing rate in all cases.

D. use the implicit rate in all cases

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