Under ASPE 3065, how are leases classified for the lessee and how are payments treated for operating leases?

• A. All leases are capital; payments expensed
• B. Leases are both capital and operating; no payments expensed
• C. Leases classified as capital or operating; operating leases have payments expensed
• D. Leases classified by asset type; payments capitalized

Answer: (C)