Leased equipment that is classified as a capital lease would be initially recorded as
A) a debit to Equipment Rent/Lease Expense and a credit to Cash.
B) a debit to the Lease Asset - Equipment and a credit to Cash.
C) a debit to Equipment Rent/Lease Expense and a credit to Lease Liability.
D) a debit to the Lease Asset - Equipment and a credit to Lease Liability.
Correct Answer:
Verified
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