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1. With an operating lease, the leased asset appears on thebalance sheet of:neither the lessor nor the lessee.the lessee.the lessor.2.With a finance lease, which party recognizes depreciationexpense on the leased asset?The lessor.The lessee.Both the lessor and the lessee.3.Which of the following statements about depreciation isleast accurate?For a firm with increasing capital expenditures, accelerateddepreciation methods tend to increase both net income andstockholders' equity when compared to straight-linedepreciation.Return on assets is initially higher using straight-linedepreciation than it is using accelerated depreciation.If an asset produces a constant stream of net income over itsuseful life and is depreciated using the straight-line method, therate of return on the asset increases over its life.Thank you in advance.