A lessee records a right-of-use asset for an operating lease

A lessee records a right-of-use asset for an operating lease

A lessee records a right-of-use asset for an operating lease:

A. Always

B. Never

C. Only if it's a finance lease

D. Only if it's a capital lease (pre-ASC 842)

Answer: B

Explanation: Operating leases (post-ASC 842) are not capitalized. Only finance leases require ROU asset recognition (ASC 842-20-25-1).