Final answer:
The statement is false because under an operating lease the lessee does not depreciate the asset. Depreciation is the responsibility of the lessor, as ownership remains with them.
Step-by-step explanation:
The statement is false. Under the operating lease method, the lessee does not depreciate the asset because the lease is considered a rental agreement. The lessee typically recognizes lease payments as an expense on a straight-line basis over the lease term. However, the lessor retains ownership of the asset and is responsible for depreciation. Note that accounting standards have evolved, and in some jurisdictions, new rules require that all leases over a certain term be recognized on the lessee's balance sheet; however, this still doesn't involve the lessee depreciating the asset under an operating lease. The depreciation would only occur in a finance lease (or capital lease), where the lessee effectively controls the asset and assumes the risks and rewards of ownership.