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Crystal Corporation makes $2,200 payments every month for leasing office equipment. Crystal recorded a lease payment as follows: Lease payable 1,320 Interest expense 880 Cash

Crystal Corporation makes $2,200 payments every month for leasing office equipment. Crystal recorded a lease payment as follows:

Lease payable 1,320
Interest expense 880
Cash 2,200

Amortization expense 1,320
Right-of-use asset 1,320

Crystal must have a(n):

Multiple Choice

Leveraged lease.

Finance lease.

Operating lease.

Sales-type lease without selling profit.

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