On Dec. 31,20X1, Dillard Corp. leased equipment to Akin Corp for three years ending Dec....
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On Dec. X Dillard Corp. leased equipment to Akin Corp for three years ending Dec. X The first of the three lease payments of $ was made at the inception of the lease. The equipment cost Dillard $ and has an expected useful life of six years. Its normal sales price is $ The lease includes a purchase option that Akin is reasonably certain to exercise at an option price of $ Dillard's interest rate is Which of the following is true in accounting for this lease?
Question options:
To amortize the rightofuse asset, Akin will credit rightofuse asset for $
Dillard will record the receipt of the bargain payment with a credit to equipment for $
To amortize the rightofuse asset, Akin will debit amortization expense for $
At the inception of the lease, Dillard will debit lease receivable for $
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