Question

Ludwig Corporation leases a machine to Kluge Corporation under a three-year lease agreement determined to be a finance/sales-type lease. At the inception of the lease, Ludwig Corporation should record

Answer 1

a lease receivable.

Step-by-step explanation:

The lease receivable is the amount that should be paid by an obligor under the lease that involves all the amount that is owed and recovered. It simply means the income that occurs at the time when it is entered between the bororwed and the other person

So according to the given situation, the corporation should record the lease receivable