What type of account is lease payable? 1) Asset 2) Liability 3) Unearned revenue 4) Owner's equity
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Anand J.
Before signing a lease, a company reports total assets of $500,000 and total liabilities of $300,000. The company then signs a 30-month lease for equipment with a payment of $922.21 each month. The lease payment has a present value of $25,000. After recording the inception of the lease, the company would report which of the following? a. Asset of $527,666.30 and total liability of $325,000.00 b. Asset of $525,000.20 and total liability of $327,666.30 c. Asset of $527,666.30 and total liability of $327,666.30 d. Asset of $525,000.00 and total liability of $325,000.00
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