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On June 30, Haka Corporation leased equipment and treated it as a finance lease although it should have been accounted for as an operating lease.

On June 30, Haka Corporation leased equipment and treated it as a finance lease although it should have been accounted for as an operating lease. What effects will this error have on Haka's income statement account classifications for the year ending December 31?

Amortization expense is understated

Interest expense is overstated

Lease expense is overstated

Lease revenue is overstated

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