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Insight Corporation leases equipment for 5 years with annual rentals of $2,000 per year. The agreement also requires that Insight purchase supplies such as oil, fasteners, and filters directly from the lessor and must spend a minimum of $350 per year over the lease term. The total lease payments used to classify the lease are:
- a. $11,750
- b. $10,350
- c. $10,000
- d. $1,750
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