RST leased equipment from MNO to be used in its warehouse.The lease term is five years.RST spent $5,000 for ordinary repairs during the second year of the lease.RST should:
A) expense the $5,000 immediately.
B) write off $5,000 at the end of the lease term.
C) capitalize the $5,000 permanently in the lease account.
D) amortize the $5,000 over the life of the lease on a reasonable basis.
Correct Answer:
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