Final answer:
A lease that includes a manufacturer's or dealer's profit is referred to as a sales-type lease, which recognizes profit or loss for the lessor at the start of the lease.
Step-by-step explanation:
A lease that involves a manufacturer's or dealer's profit is known as a sales-type lease. This type of lease is distinguished from other types of leases because the lessor, typically a manufacturer or dealer, recognizes profit or loss at the inception of the lease as a result of the sale. The key factors in a sales-type lease include both the transfer of ownership risks and rewards to the lessee, and the realization of profit or loss for the lessor. Unlike operating leases, where the lessor earns income through the rental of an asset and direct financing leases, which primarily aim to recover the cost of the asset and earn interest income, a sales-type lease transaction reflects a sale, with the associated profit or loss recognized immediately.