Business Finance : finance and accounting, business and finance homework help

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Under the sales type lease, the fair value of the leased property at the inception of the lease differs from the cost or carrying amount to the lessor. These differences give rise to a dealer's profit or loss, but the lessor need not to be a dealer to realize a profit or loss. Please explain the differences between a direct financing lease and sales type lease for a lessor. Provide an example to support your answer

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