单选题

If a lease is capitalized rather than expensed (an operating lease) the firm's net income will（）。

A、 decrease over the life of the lease.
B、 remain constant over the life of the lease.
C、 increase over the life of the lease.

【正确答案】 C

【答案解析】

In early years, capitalized income<operating income.
In later years, capitalized income>operating income.
But income will increase over the entire period.