The correct answer is: c)
Step 1: Calculate the Present Value of the lease:
PMT = $12,000; N = 7; I = 7.5%*
Therefore, PV = 63,559
*Note that we have to use the lower of the lease rate or the rate on the firm's general debt.
Step 2: Amortization Rate = 63,559/7 = 9,080
Step 3: Ending Book Value = 63,559 - 9,080 = 54,479
The correct answer is b): One of the most common types of nonqualified retirement plans is the deferred compensation plan. ...
The correct answer is b) Insider trading would include information that is material and non-public. Certainly, a poor earnings ...
The correct answer is c. Depreciation is added back to net income only when calculating for cash flow. In the case of shareholder's ...
Free info on financial certification exams including study guides, exam questions, and much more!
- No results found.