In a direct financing lease, the lessor's carrying value of the leased asset is less than its fair value
Indicate whether the statement is true or false
False
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Which of the following is not included in the purchase cost of merchandise inventory?
a. Purchase discounts b. Overhead costs c. Freight-in costs d. Purchase returns and allowances
The degree of financial leverage is the ratio of ________ to percentage change in EBIT
A) operating profit B) percentage change in sales C) percentage change in EPS D) long-term debt
In January, 2002, Jones Company issues a pure-discount bond with a promised payment of X=$1000 that matures in T=5 years. The market price of the bond is P=$777 . The bond is default- risky. Specifically, the probability is 0
8 that Jones Company will pay the full amount of X at maturity, and is 0.2 that the firm will default, in which case the payoff to bondholders will be only $555 . Calculate the bond's promised yield to maturity, y, and expected return to maturity, rD. y rD a. 8.18% 5.18% b. 5.18% 5.18% c. 8.18% 3.23% d. 5.18% 3.23% e. 5.18% 1.57% FORMULAS: y = [X/P]1/T –1; rD = [E(PAY)/P]1/T –1, where E(PAY)= p[X] + (1-p)[X']
Under the UPA, partners hold title to firm property by tenancy in partnership
Indicate whether the statement is true or false