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Farm Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the operating lease. The first of eight annual lease payments of

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Farm Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the operating lease. The first of eight annual lease payments of $20,000 was received and recorded on July 1, 2021. Farm had purchased the equipment for $110,000. What amount of revenue from the lease should Farm report at the time of receiving the first lease payment? Select one: O A. $6,750 B. $0 C. $5,750 D. $10,000

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