Crystal Corporation makes $2,400 payments every month for leasing office equipment. Crystal recorded a lease payment as
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Question:
Crystal Corporation makes $2,400 payments every month for leasing office equipment. Crystal recorded a lease payment as follows:
Lease payable ................................1,440
Interest expense ........................... 960
Cash............................................................................2,400
Amortization expense.................1,440
Right-of-use asset ....................................................1,440
Crystal must have a(n):
a). Operating lease.
b). Leveraged lease.
c). Finance lease.
d). Sales-type lease without selling profit.
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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