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An asset with a market value of $ 9 5 , 0 0 0 and a cost of $ 8 0 , 0 0 0

An asset with a market value of $95,000 and a cost of $80,000 is leased on 11?x1. The lease is a sales-type lease for the
lessor. Six annual lease payments are due on December 31 beginning on 12/31/x1. The asset will have no residual value.
The lessor sets a rate of return of 8%.
What amount of gross profit does the lessor recognize at the inception of the lease?
A. $15,833
B. $95,000
C. $20,550
D. $15,000
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