Crystal Corporation makes $2,300 payments every month for leasing office equipment. Crystal recorded a lease payment as follows:

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Crystal Corporation makes $2,300 payments every month for leasing office equipment. Crystal recorded a lease payment as follows:

Lease payable 1,380 Interest expense 920 Cash 2,300 Amortization expense 1,380 Right-of-use asset 1,380 Crystal must have a(n):

Business

1 answer:

alexandr402 [8] · Answer 1 · 2023-07-08T09:30:29+03:00

Crystal Corporation must have an <u>operating lease</u> as its makes $2,300 payments every month for leasing office equipment.

<h3>What is an operating lease?</h3>

An operating lease refers to a contractual agreement that permits use of an asset without actually transferring the full ownership rights to other party.

In conclusion, the firm have an operating lease as its makes $2,300 payments every month for leasing office equipment.