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Problem 1: A capital lease is recorded as an asset on the balance sheet in an amount equal to:
A. the dollar amount of each lease payment multiplied by the total number of lease payments in the original agreement.
B. the dollar amount of each lease payment multiplied by the number of lease payments remaining.
C. the dollar amount of each lease payment multiplied by the number of lease payments per year.
D. the lesser of the present value of the remaining lease payments or the present value of the lease payments for a one year period
E. the present value of the remaining lease payment
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