On January 1, 2019, Wellburn Corp leased an asset from Tabitha Company. The asset originally cost Tabltha $300,000. The lease agreement is an OPERATING LEASE that calls for four annual payments beginning on January 1, 2019, In the amount of $36,000. The other three remaining payments will be made on January 1 of each subsequent year. Which of the following journal entries should be made on the books of Tabitha on January 1, 2019? A Cash 3 6,000 Lease Receivable 36,000 B/ Cash 3 6,000 Unearned Rent Revenu 36,000 C/ Cash 36,000 Accounts Receivable 36,000 DI Cash 3 6,000 Rent Expense 36,000 GAAP requires that some lease agreements be accounted for as purchases. The justification for this treatment is that a lease of this type: A Complies with the concept of form over substance B/ Reflects the relationship of cause and effect C/ Satisfies the concept of historical cost DI Conveys most of the risks and benefits of property ownership From the perspective of the lessor, two possible lease classifications are Al Financing or Sales type B/ Operating or financing C/ Sales type or indirect financing DI Operating or Sales type From the perspective of the lessee, leases may be classified as either: A Sales type without selling profit or sales type with selling profit B/ Finance or sales type without selling profit C/ Finance or operating DI Sales type or operating