Which of the following statements characterizes a sales-type lease?
A) The lessor recognizes only interest revenue over the life of the asset.
B) The lessor recognizes only interest revenue over the lease term.
C) The lessor recognizes a dealer's profit at lease inception and interest revenue over the lease term.
D) The lessor recognizes a dealer's profit at lease inception and interest revenue over the asset life.
Correct Answer:
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