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(###20)No chat gpt answers & don't copy from chegg or else I'll give 5 downvotes...

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Accounting

(###20)No chat gpt answers & don't copy from chegg or else I'll give 5 downvotes
A company enters into a complex lease agreement. The terms include variable lease payments based on usage, a residual value guarantee by the lessee, and an implicit interest rate that is not readily determinable by the lessee. How should the lessee account for this lease?
A) Recognize a right-of-use asset and lease liability based solely on the fixed lease payments.
B) The lease should be treated as a capital lease, requiring the use of a discount rate based on lessee's incremental borrowing rate.
C) The lease should be considered an operating lease as the implicit interest rate cannot be determined.
D) The company should estimate a discount rate and utilize that rate to determine the right-of-use asset and lease liability.

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