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9. Which of the following is most correct if a lessee capitalizes a lease? Current assets...

9. Which of the following is most correct if a lessee capitalizes a lease?

Current assets increase.

Current liabilities increase.  

Current liabilities decrease.  
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Answer #1

please find below the solution.. let me know if you need any clarification..

correct answer is optiokn : Current liabilities decresae.

When leasee is capitalized the fixed asset will increase and long term liability will increase (Current liability will decrease) . therefore answer is current liability decrease.

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