The Primary Difference Between a Direct-Financing Lease and a Sales-Type

The primary difference between a direct-financing lease and a sales-type lease is the

A) manner in which rental receipts are recorded as rental income.
B) amount of the depreciation recorded each year by the lessor.
C) recognition of the manufacturer's or dealer's profit at (or loss) the inception of the lease.
D) allocation of initial direct costs by the lessor to periods benefited by the lease arrangements.

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