Which valuation approach would primarily consider rental income from leased equipment?

The income approach is the correct selection because it focuses specifically on the rental income generated from leased equipment. This approach estimates the value of an asset based on the cash flows it can generate, such as rent, over time. By assessing the potential income that can be derived from the leased equipment, this method effectively captures its economic value in a way that reflects how investors typically assess income-producing properties.

In contrast, the cost approach evaluates the cost to replace or reproduce an asset minus any depreciation, which is more focused on the asset’s physical characteristics rather than its income-generating capability. The market approach relies on comparable sales data to determine value, evaluating how similar assets are priced in the marketplace. Value-in-use considers the specific utility of an asset to the owner, which may not directly align with the income approach's focus on rental income. Thus, the income approach uniquely emphasizes the financial return an asset can offer, making it the most suitable choice for valuing leased equipment based on its rental potential.