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All right, folks, were now going to take a look at lessee and lessor accounting. And lets take a look at this one. Were going to classify a lease, which means were really going to, were going to show a balance sheet asset and a balance sheet liability at this point in time. So in this case, this happened to be or a microscope. The lessee, thats the woman over here, she has to shell out cash, giving it to, that does like Sugar Bear, doesnt it? Does look a lot like that handsome dude I know called Peter Olinto. So shes going to give money to Olinto and hes gong to give the product, which is the microscope to her for use during a stated period of time. So thats the fundamentals that we have here. So how do we determine if its a finance capital lease or an operating capital lease? Well, if the client OWNES it, O or a W or a N or an E or an S. If the client OWNES it, they should treat it as a finance capital lease. If they fail all of those rules, then its simply an oper
