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LMN Leases Construction Equipment on Sales-Type Leases

Question 67

Multiple Choice

LMN leases construction equipment on sales-type leases.LMN wants to record a $7,000 dealer's profit on assets leased, each of which cost $60,000.What annual year-end rentals should LMN quote to earn a 12 percent return on 8-year leases?


A) $9,380
B) $6,625
C) $8,375
D) $13,487

Correct Answer:

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