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.

Answer rating: 100% (QA)

Solution Option A Operating L... View the full answer