multiple choice 6 - e None of these c $800,000 –[$310,426...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
1. If the present value of the future lease payments is $800,000 at January 1, 2013, what is the amount of the reduction in the lease liability for Alt Corp. in the second full year of the lease if Alt Corp. accounts for the lease as a capital lease? (Rounded to the nearest dollar.) a. $230,426 b. $246,426 c. $253,469 d. $266,140
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: e. None of these c $800,000 – [$310,426 – ($800,000 × .1)] = $569,574. $310,426 – ($569,574 × .1) = $253,469. 2. From the viewpoint of Yates, what type of lease agreement exists? a. Operating lease b. Capital lease c. Sales-type lease d. Direct-financing lease a Fails to meet Group II requirements....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern