USA Lease Accounting


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I am a little confused how we should account for an item we sell to a customer:

We sell ATM's for 6k and purchase them for 5k, the customer is the lessor and takes control of the asset.

In return, we provide other services for the machine and the contract is 5 years.

Do I recognize all this revenue at once or do I spread it over 5 years?
 
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kirby

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You recognize the revenue as you earn it. Spread it over 5 years.
 

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