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Explain the distinction between a direct-financing lease and a sales-type lease for a lessor.

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Accounting

Explain the distinction between a direct-financing lease and asales-type lease for a lessor.

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A sales type lease also sometimes known as a capital lease derives its name from its similarity to a sale These types of leases apply in situations such as a manufacturer leasing property or the use of property to a lessee This could be equipment vehicles or other goods    See Answer
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