Consider the following questions:
1. Distinguish between a Type A lease and a Type B lease.
2. At the beginning of a Type B lease, the lessee will record what asset and liability, if any?
3. At the beginning of a Type B lease, the lessor will record what asset and liability, if any?
4. In accounting for a Type A lease, how are the lessee's and lessor's income statements affected?
If possible, please give examples to better understand your response.