The lessor does not have any asset recorded in its financial statements for a lease classified as a sales-type lease.

Name: The lessor does not have any asset recorded in its financial statements for a lease classified as a sales-type lease.
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Question

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In a sales-type lease, the lessor is treated as if they have sold the asset to the lessee and therefore, they record the asset and the related sales revenue in their financial statements.

The Lessor Does Not Have Any Asset Recorded in Its