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LMN correctly recorded a 5-year lease on a special machine by making the following entry on the date the lease was signed: DR.Lease receivable CR.
LMN correctly recorded a 5-year lease on a special machine by making the following entry on the date the lease was signed:
DR.Lease receivable CR. Asset-machine under leaseCR. Gross margin (dealer profit)CR. Unearned interest revenueThe lease was the following:
a.
cannot determine based on the limited data given.
b.
sales-type lease.
c.
finance lease.
d.
operating lease.
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