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Reataurant Equipment, inc., leased nonapecialized equipment, with an origiral cont of $5 milion and a remaining estimated useful tife of 10 yearn: to Rnchy Battom

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Reataurant Equipment, inc., leased nonapecialized equipment, with an origiral cont of $5 milion and a remaining estimated useful tife of 10 yearn: to Rnchy Battom Cafe for a 5 -year period, at which time possession of the equipment will revert back, to Restaurant Equipment, Inc. The equipment normally. sold for $6.3 million. The present value of the lease payments for both the lessor and lessee is $5.3 mittion. The first payment was made at the beginning of the lease. How should Restaurant Equipment, Inc., classify this lease? Sales-type lease with selling profit Operating lease Operating lease or sales-type lease with selling profit

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