Lopez Plastics Co. makes $3,300 payments every month for leasing office equipment. Lopez recorded a lease payment as follows:

DR CR

Lease payable 1,980

Interest expense 1,320

Cash 3,300

Amortization expense 1,980

Right-of-use asset 1,980

Lasch must have a(n):

Multiple Choice

A. Operating lease.

B. Sales-type lease without selling profit.

C. Leveraged lease.

D. Finance lease.