Crystal Corporation Makes $2,000 Payments Every Month for Leasing Office

Multiple Choice

Crystal Corporation makes $2,000 payments every month for leasing office equipment. Crystal recorded a lease payment as follows: $\begin{array}{|c|r|r|}\hline \text { Lease payable } & 1,200 \\\hline \text { Interest expense } & 800 \\\hline \text { Cash } &&2,000 \\\hline\end{array}$ $\begin{array}{|c|r|r|}\hline \text { Amortization expense } & 1,200 \\\hline \text { Right-of-use asset } && 1,200 \\\hline\end{array}$ Crystal must have a(n) :

A) Operating lease.
B) Leveraged lease.
C) Finance lease.
D) Sales-type lease without selling profit.