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A finance lease: a) reports the lease as equivalent to renting the asset. b) records a liability only for the amount that is due immediately.

A finance lease:

a) reports the lease as equivalent to renting the asset.

b) records a liability only for the amount that is due immediately.

c) is an example of off-balance sheet financing.

d) provides the lessee with substantially all the benefits and risks of ownership.

e) is an ordinary annuity.

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