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On December 31, 2013, our company signed a lease for some equipment having an 8-year useful life. The lease payments are made annually, beginning at

On December 31, 2013, our company signed a lease for some equipment having an 8-year useful life. The lease payments are made annually, beginning at the signing date. Title does not transfer to us, so the equipment will be returned to the lessor on December 31, 2020. There is no bargain purchase option. In this situation, our company

A. is the lessee in a capital lease.

B. is the lessee in a sales-type lease.

C. is the lessor in a capital lease.

D. is the lessor in a sales-type lease

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