Security Inc manufactures equipment that is sold or leased. On December 31 . 2014, Security leased equipment to Quirky for a five-year period expiring December 31 . 2019, at which date ownership of the leased asset will be transferred to Quirky. Equal $40,000 payments under the lease are due on December 31 of each year. The first payment was made on December 31 . 2014 . Collectibility of the
remaining lease payments is reasonably assured, and Security has no material cost uncertainties. The normal sales price of the equipment is $144,000 and cost is $110,000 . For the year ended December 31 . 2014, how much income should Security recognize from the lease transaction?
a. $46,000
b. $40,000
c. $34,000
d. $28,000
C
You might also like to view...
Which is an intangible element of a corporate image?
A) the corporate name and logo B) ideals and beliefs of corporate personnel C) the employees D) the package and label
The limitations of financial performance measures ________.
A) lead management to use accelerated depreciation methods B) make it easy for companies to create goal congruence C) lead management to use the net book value of assets D) can be overcome by taking a broader view of performance with a balanced scorecard
______________ would include such actions as stealing money or materials from the firm or accepting bribes.
a. Political deviance b. Property deviance c. Production deviance d. Personal aggression
Assume that GM common stock has a beta of + 0.8. If you expect the market to go up 20% next year, you should also expect GM's price to go up
A) 16.0%. B) 16.8%. C) 19.2%. D) 30.0%.