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Depreciation Expense
The allocated portion of the cost of a fixed asset over its useful life, recognized as an expense on the income statement.
Sales-Type Lease
A financing arrangement in leasing, where the lessor recognizes immediate sales revenue and profit on the leased asset.
Direct Financing Lease
A leasing arrangement where the lessor purchases an asset and leases it out, recognizing interest income over the lease term.
Implicit Rate
The interest rate implied in a lease arrangement, calculated based on the present value of lease payments and the asset's fair value.
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