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a. A pension plan with plan liabilities greater than plan assets.
b. A pension plan that is in technical default.
c. A pension plan that does not meet legal pension requirements.
d. A pension plan with plan assets greater than plan liabilities. Page 1 of 21 END-OF-CHAPTER MATERIAL LO 1
LO 3 MINI-EXERCISES
S ME-1 Computing the present value of a lease
Intel Corporation is leasing an office building for 3 years. Terms of the lease
require Intel to make a $5,000 rental payment at the end of each month over the
life of the lease. Assuming an annual discount rate of 10 percent, what is the
present value of this lease?
0.10 / 12
-5,000 EXCEL OUTPUT
154,956.18 LO 1
LO 3 S ME-2 Computing the present value of a lease
Microsoft Corporation is leasing an office building for 4 years. Terms of the lease
require Microsoft to make a $20,000 rental payment at the end of each year over
the life of the lease, as well as a lump sum payment at the end of the lease of
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This homework help was uploaded on 03/27/2014 for the course ACCOUNTING 151 taught by Professor Chinn during the Spring '12 term at Lehigh University .
- Spring '12