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Fox Co. leases equipment and prepays Owl Co. $135,000, lease payments for the entire 9-month lease starting on March 1, 2020, plus $15,000 as a
Fox Co. leases equipment and prepays Owl Co. $135,000, lease payments for the entire 9-month lease starting on March 1, 2020, plus $15,000 as a security deposit. If lessee makes the proper lease election, what are the financial statement effects oflessee'sfirstadjustingentry for this lease onJuly 31, 2020(Fox's fiscal year-end)?
Group of answer choices
A: DL: NESE: DNI: NECFs: NE
A: DL: NESE: DNI: DCFs: NE
A: DL: DSE: NENI: NECFs:NE
A: DL: NESE: DNI: DCFs: D
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