1. On January 1, 2014, MU Corporation leased an asset, under an operating lease, to obtain the use of a special machine for three years. The lease payments were $9,000 per year payable at each...

Extracted text: 1. On January 1, 2014, MU Corporation leased an asset, under an operating lease, to obtain the use of a special machine for three years. The lease payments were $9,000 per year payable at each year-end; the lessee must pay all operating expenses. At the inception date, MU Corporation should: a. record the asset at $27,000. b. record the rent expense of $27,000. c. record the asset at its fair market value. d. make no entry. record the asset at $27,000. O record the rent expense of $27,000. record the asset at its fair market value. make no entry