LMN correctly recorded a 5-year lease on a special machine by making the following entry on the date the lease was signed: The lease was the following:
A)sales-type lease.
B)could be either a direct financing or sales-type lease.
C)operating lease.
D)direct financing lease.
E)cannot determine based on the limited data given.

Question

LMN correctly recorded a 5-year lease on a special machine by making the following entry on the date the lease was signed:  The lease was the following:
A)sales-type lease. 
B)could be either a direct financing or sales-type lease. 
C)operating lease. 
D)direct financing lease. 
E)cannot determine based on the limited data given.

Quizplus · Accepted Answer

The Answer of LMN correctly recorded a 5-year lease on a special machine by making the following entry on the date the lease was signed:  The lease was the following:
A)sales-type lease. 
B)could be either a direct financing or sales-type lease. 
C)operating lease. 
D)direct financing lease. 
E)cannot determine based on the limited data given.

LMN Correctly Recorded a 5-Year Lease on a Special Machine