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On January 1, Leveler Corporation leased equipment to Messy Company. The present value of the...

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Accounting

On January 1, Leveler Corporation leased equipment to Messy Company. The present value of the lease payments is $200,000 and Levelers cost of the equipment was $125,000. The lease is properly classified as a sales-type lease. In comparison to the entries that would have been made if this lease did not include a selling profit, how are the entries affected because this lease includes a selling profit?

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