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Kaye Corporation agreed to lease a computer, at cost, to Lumbar Company for $36,000 payable each year-end for seven years without a bargain purchase option, or, as an equivalent alternative, for $33,000 per year with a bargain purchase option, after the seventh rental. If the lease is a direct financing lease, and Kaye expects to earn a 1 . percent return, the amount of cash Lumbar Company would
need to pay for the bargain purchase option is a. $30,266. b. $26,340. c. $21,000. d. $9,948.
Answer the following statements true (T) or false (F)
1) A depreciable asset's original cost is relevant when considering whether to replace the asset. 2) A sunk cost is a cost that was incurred in the past and cannot be changed regardless of what future action is taken. 3) Management decisions are based primarily on quantitative data because the qualitative factors are usually not relevant to the decision-making process. 4) Differential analysis is a method that looks at how operating income would differ under each budget scenario. 5) Differential analysis is a common approach to making long-term business decisions.
Which of the following fallacies involves focusing on an irrelevant issue to draw attention away from a central issue?
A) Red herring B) False dilemma C) Ad hominem attack D) False analogy E) False cause
Writing a message with a reading index appropriate to the audience guarantees that the message will be understood
Indicate whether the statement is true or false