Ollie Company entered into a lease agreement with Costello, Inc, to lease an asset that cost Ollie $120,000 . The lease agreement requires five annual year-end rentals of $40,000 each. Ollie's implicit rate on the lease is 1 . percent. Ollie's dealer profit on this lease would be
a. $14,086 loss.
b. $14,086 gain.
c. $18,000 gain.
d. $80,000 gain.
B
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