Mann CoIs the Lessor in a Six-Year Type a Lease Beginning

Mann Co.is the lessor in a six-year Type A lease beginning December 31,2016.The agreement specifies that Woo Corp.make equal annual lease payments on December 31 of each year.Under the new ASU,in its 2017 income statement:

A) Woo will report interest expense and amortization expense.
B) Woo will report interest expense and depreciation expense.
C) Mann will report interest revenue and depreciation expense.
D) Mann will report interest revenue and amortization expense.

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