When a Lessee Measures the Present Value of Future Rentals

When a lessee measures the present value of future rentals to be capitalized under a finance lease, identifiable payments expected to be paid by the lessee to cover taxes, insurance, and maintenance should be:

A) included in the present value of the future rentals to be capitalized.
B) capitalized, but at a different discount rate and reported in a different account than the present value of the future rental payments.
C) excluded from the present value of the future rentals to be capitalized.
D) capitalized, but at a different discount rate and for a relevant period that usually is different than for the future rental payments.

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