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RST Entered into a Direct Financing Lease Agreement, Which Required

Question 208

Multiple Choice

RST entered into a direct financing lease agreement, which required rentals of $9,600, each year-end.The lease term was for ten years and a 14 percent rate of return is expected by RST.The cost of the machine for RST was (rounded to the nearest dollar) :


A) $82,560
B) $96,000
C) $109,440
D) $50,075

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